Slack Resources and Subsidiary Performance in Emerging Market : Focus on Moderating Effect of Local Experience and Competition Intensity

The purpose of this study is to proceed to the two studies, as follows: i) first of all, we intended to proceed with the study of the determinants of financial performance of foreign subsidiaries. Especially, we looked at whether any relationship exists between slack resources and performance of overseas subsidiaries of Korea firm. Most studies about the slack resources and performance in the home country are actively being made but empirical study of the foreign subsidiaries related to slack resources are very scarce situation. Second, previous studies have considered a relationship between the slack resources and performance as a linear relationship. However, this study considered the relationship of the slack resources and performance of foreign subsidiaries to non-linear relationship, not a linear relationship and then Conducted an empirical analysis. Finally, we conducted the study on whether any variables(local experience and competition intensity) are representing a moderating effect in relationship between the slack resources and performance.