ABSTRACT

Physical presence through establishment of subsidiary is one of the salient features of internationalization of Indian multinationals in the software services sector. However, closure of such subsidiaries has received limited limelight than the success stories. The paper examines the less explored event of international subsidiary closure using a representative sample of Indian software services multinationals and the associated subsidiaries closed during 2007–2017. Cox proportional hazard function is estimated using host-country, parent-firm and subsidiary-specific factors. Results show that the three levels of factors have significant impact on subsidiary closure. While economic growth in host country reduced probability of closure, the smaller subsidiaries and less profitable ones had higher probability of closure. Business group affiliation was found to have direct and independent impact on reducing probability of subsidiary closure. However, the liability of inter-regional foreignness due to higher geographical breadth of internationalization was not supported in the case of Indian software multinationals.

摘要

通过设立子公司实现实体存在是印度跨国公司在软件服务领域国际化的显着特征之一。但是，与成功案例相比，关闭此类子公司受到的关注有限。本文使用具有代表性的印度软件服务跨国公司和2007-2017年间关闭的关联子公司的样本，研究了较少探索的国际子公司关闭事件。使用东道国，母公司和特定于子公司的因素估算Cox比例风险函数。结果表明，三个层次的因素对子公司的关闭有重大影响。虽然东道国的经济增长减少了关闭的可能性，但较小的子公司和利润较低的子公司却有较高的关闭可能性。发现业务组从属关系对减少子公司关闭的可能性具有直接和独立的影响。但是，印度软件跨国公司不支持由于国际化地理区域的广度而导致的区域间外国责任。