International roles of foreign-owned subsidiaries in New Zealand: an exploratory study

Advances in the capacity to manage overseas operations have been linked to foreign-owned subsidiaries of multinational enterprises performing more varied roles for their parent organisations than they did in the past. Drawing on evidence from an original large-scale survey, this study explores the international roles performed by 429 foreign-owned subsidiaries in New Zealand. Traditionally, subsidiaries in New Zealand have predominantly been established to service the local market which although comparatively small is remote from major sources of foreign investment. The study finds that many subsidiaries have some form of international role and that subsidiaries frequently perform a variety of roles for their organisations. Investigation of subsidiary characteristics associated with an international role finds that those managed independently, and those managed by a network of reporting channels have most propensity and potential to engage in international roles. This evidence justifies greater recognition that subsidiary operations may make multiple contributions to their organisation rather than have a single purpose.