Liu, J; Wang, Y and Du, X (2025) The impact of autonomy on sustainable performance in foreign subsidiaries: An empirical study from Chinese construction industry. Engineering, Construction and Architectural Management, 32(2), pp. 1370-1391. ISSN 0969-9988
Abstract
Purpose: Foreign construction subsidiaries play an important role in the global construction market. How to establish and maintain long-term sustainable performance has attracted increased attention, but only a few studies have considered this issue. The purpose of this study is to explore the relationship between autonomy and the sustainable performance of subsidiaries and to provide support for their management control modes. Design/methodology/approach: From an institutional logics perspective, empirical research using a questionnaire survey was conducted following the methodological framework of this study. Relevant data were collected from 106 experienced managers of foreign construction subsidiaries, and the hypotheses were tested through a regression model. Findings: The results show that foreign construction subsidiaries have a high degree of operational autonomy, which tends to strengthen their embeddedness in the host country and improve their sustainable performance. However, the role of strategic autonomy is not found to be significant. The moderation results show that the positive impact between operational autonomy and external network embeddedness is strengthened by institutional distance. Institutional distance has no significant moderating impact on the relationship between strategic autonomy and external network embeddedness, respectively. Research limitations/implications: Geographical limitations may exist as the survey is focused on the Chinese construction foreign subsidiaries. However, based on an institutional logics perspective, this study discusses the management control mode of foreign subsidiaries, which enriches the antecedents of sustainable performance and can provide an in-depth explanation of the effects of the organizational strategies of multinational construction enterprises. Practical implications: This study provides beneficial information for the sustainable performance of foreign construction subsidiaries. It will provide detailed guidance to managers located in different institutional environments on optimally promoting the sustainable development of subsidiaries. Originality/value: This study identifies autonomy as an important antecedent, making it one of the first studies investigating autonomy on the sustainable performance of foreign construction subsidiaries. The findings of this study can contribute to the construction subsidiaries' sustainable performance literature and provide novel, comprehensive knowledge for academia and practice.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | autonomy; external network embeddedness; institutional distance; sustainable performance; questionnaire survey |
| Index terms: | regression model, embeddedness, academia, empirical study, global construction, construction industry, institutional logic, organizational strategy, manager, survey, sustainable development, questionnaire, methodology |
| Subjects: | health safety and environment, research methods, theoretical framing, practitioner, strategic management, statistical analysis, industry analysis, sociology, educational institutions, business, data collection methods |
| Topics: | Education, Health and Safety, International Construction, Business Strategy, Research Practice, Roles and Professions |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here