Dual-option subsidiaries and exit decisions in economic crisis

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dc.contributor.authorChung, Chris Changwhaen_US
dc.contributor.authorLee, Seung-Hyunen_US
dc.contributor.authorLee, Jeoung-Yulen_US
dc.date.accessioned2013-01-08T22:15:58Z
dc.date.available2013-01-08T22:15:58Z
dc.date.created2012-08-19en_US
dc.date.issued2013-01-08
dc.description.abstractThis study examines the dual implications of dual-option subsidiaries on exit decisions during times of economic crisis. Retaining dual-option subsidiaries in crisis-stricken countries means leaving a shadow option open for future growth once a crisis ends. However, MNCs may encounter problems pursuing either option due to challenges in managing dual-option subsidiaries with clashing strategic mandates. The equivocal nature of dual-option subsidiaries points to the possibility of another factor playing an important moderating role in exit decisions—subsidiary performance—which has been rarely considered in the MNC real options literature. Our primary argument is that lower subsidiary performance increases the influence of shadow option value embedded in dual-option subsidiaries. Analyzing a sample of Korean MNCs’ subsidiaries in Asian economies, we find that when profitability falls, subsidiaries with dual options are less likely to be exited than those with single options.en_US
dc.description.versionAuthor's accepted manuscripten_US
dc.identifier.bibliographicCitationChung, Chris Changwha, Seung-Hyun Lee, and Jeoung-Yul Lee. 2013. "Dual-option subsidiaries and exit decisions in economic crisis. Management International Review 53 (4): 555-577.en_US
dc.identifier.urihttp://hdl.handle.net/10735.1/2477
dc.publisherSpringer-Verlagen_US
dc.relation.urihttp://dx.doi.org/10.1007/s11575-012-0157-9en_US
dc.rights© Springer-Verlagen_US
dc.subjectInternational business enterprises
dc.subjectMultinational corporationsen_US
dc.subjectSubsidiary corporations.en_US
dc.subjectDual-option subsidiaryen_US
dc.titleDual-option subsidiaries and exit decisions in economic crisisen_US
dc.typeTexten_US
dc.type.genreArticleen_US

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