How parenting knowledge from Chinese firms benefits overseas subsidiaries: the moderating effects of institutional distance and subsidiary age

Abstract

Purpose This study aims to investigate the direct impact of emerging market multinational corporations' (EMNCs) parenting knowledge (technological and marketing) on the performance of their overseas subsidiaries, and how institutional distance and subsidiary age moderate these relationships. Design/methodology/approach Drawing on the knowledge-based view and institutional theory, we analyzed an unbalanced panel dataset of 331 Chinese listed manufacturing EMNCs and their 596 overseas subsidiaries using fixed-effects regression models. Findings The results reveal that EMNCs' technological and marketing knowledge significantly enhance subsidiary performance. Institutional distance (ID) negatively moderates these relationships, whereas subsidiary age (SA) exerts a positive moderating effect. Furthermore, SA effectively mitigates the adverse impact of ID on the relationship between technological knowledge and subsidiary performance, though this buffering effect does not extend to marketing knowledge. Originality/value By developing a contingency framework that clarifies the boundary conditions of EMNC parenting advantages, this study offers novel insights into how macro-level institutional frictions and micro-level subsidiary maturation interact to shape cross-border knowledge transfer effectiveness in developed host markets.