Home-country government support, interstate relations and the subsidiary performance of emerging market multinational enterprises

Xia Han, Xiaohui Liu, Tianjiao Xia, Lan Gao

Research output: Contribution to journalArticlepeer-review

42 Citations (Scopus)


Drawing on the institution-based view and the global political economy perspective, this study examines the role of home-country government support and interstate relations in the overseas subsidiary performance of Chinese multinational enterprises (MNEs). We focus on two aspects of home-country government support: financial support and non-financial policy support, as well as their effects under the contingency of interstate relations. Using survey data, we find that Chinese MNEs' subsidiary performance is positively related to the degree of home-country government non-financial policy support, but not financial support. The impact of non-financial policy support is contingent on interstate political and economic relations. Stronger interstate political relations complement the impact of non-financial policy support on subsidiary performance, whereas interstate economic relations have a substitutive effect.

Original languageEnglish
Pages (from-to)160-172
Number of pages13
JournalJournal of Business Research
Early online date4 May 2018
Publication statusPublished - Dec 2018
Externally publishedYes


  • China
  • Emerging market MNEs
  • Global political economy
  • Institutional embeddedness
  • Interstate relations
  • Subsidiary performance

Cite this