“…Extant research shows that subsidiary autonomy granted by MNE parents has a positive impact on subsidiary performance (Gammelgaard, et al, 2012;Gomez & Werner, 2004;McDonald, Warhurst, & Allen, 2008). Most existing research has argued that less autonomy will discourage the subsidiary from fostering a higher level of organisational learning (Luo, 2003), reduce parent-subsidiary cooperation (Birkinshaw, et al, 2000), block knowledge creation (Young & Tavares, 2004) and hinder strategic leadership initiatives (Birkinshaw, Hood, & Jonsson, 1998).…”