Document Type:Report

Subject Area:Business

Document 1

H3: There exists a relationship between selected implementation approaches and the resulting financial performance of the subsidiary. These hypotheses are represented by the image below: H3 (+) H1 (+) H2 (+) Reliability Test Results Dependent Variable A review of the above results reveals that the subsidiary financial performance obtained a Cronbach’s Alpha of 0. based on four items that include the return on investment that the business will yield its level of profitability, cash flow efficiency and the productivity levels registered. The level of positivity obtained from the above signals to reliability. Independent Variables Implementation as a variable in the study also scored highly on reliability (0. in place of 8 items present. These items included the practices employed at the central organization, the planning aspect, the management of the processes involved, the people involved, business results, focus on customers and their levels of satisfaction, level of information management and analysis and lastly the leadership in place. Business distance as another essential variable in influencing business financial performance obtained a Cronbach’s Alpha of 0. The variable has five elements that include the market structure, the economic situation in the market, the prevailing business practices, language employed and the political and legal environment. The variable features the specific advantages that the business enjoys when operating locally and internationally as also revealed by Jiang and Bruce1. The cultural distance on the other hand obtained a reliability score of 0. with 5 items involved that include the level of uncertainty in the environment, the individualism, long term orientation, power distance between workers and the level of respect to gender (masculinity).

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The control variables in the above study included the: • HSO State ownership in headquarters • Employee numbers (Hemployeescale) • Industry (Hindustrydummy) • Total assets (Hassetscale) • FDI among (HamountFDI) • English level (HEnglish) Table Two: Mean and Standard Deviation Mean Standard Deviation Business Distance 3. Implementation 3. Subsidiary Financial Performance 3. Cultural Distance 3. Head Quarter’s state of Ownership. Scale of employee 6. Industry. Firm’s total asset 5. There exist many means of deriving correlation but the most popular are Pearson Correlation and the Spearman rank Correlation. The selection of either of the two over the other is based on different reasons as reliant on the researcher. Rebekic et al. reveal that the preferences of Pearson coefficient in measuring correlation is based on its strength in presenting an analysis of the linear relationship between variables while spearman’s correlation bases on the established ranks between variables3.

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The spearman correlation is essential in evaluating the relationship between variables that share ordinal characteristics. tailed. N 354 354 354 354 354 6 CC. tailed. N 354 354 354 354 354 354 7 CC. tailed. insignificant) 1= Business distance, 2= Implementation, 3= Subsidiary Financial Performance, 4= Cultural Distance, 5= Head Quarter’s state of Ownership, 6= Scale of Employee, 7= Industry, 8= Firm’s total Asset, 9= Amount of FDI, and 10= English Level. Business Distances: Presents positive correlation for the other variables. In relation to the performance of the organization, it presents a positive 0. correlation which indicates to the existence of a positive relationship between the two variables. Implementation: The measure of implementation also features a positive correlation on the financial performance of the subsidiary as indicated by the 0. in relation to the dependent variable. The indication of this is that the variable does not have a strong effect on the dependent variable.

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Firm total Asset scale: The high positive correlation of 0. also registered in relation to this variable shows an effect on the dependent variable. Amount of Foreign Direct Investment: The amount of FDI has a positive 0. In examining regression results, the significance value of the results is an essential ingredient. It does not only reflect the contribution of the analysis in affirming or rejecting the hypotheses but also reflects the relationship between the variables. Basing on an alpha level of 0. in this study, it is reflected that those variables with p values below 0. indicates to presence of a relationship with the dependent and independent variables. Intercept / Constant: 2. The relationship between the two posts an interaction with a p value of 0. which is higher than the alpha value of 0. The model shows that there exists no statistically significant relationship between the business distance and implementation approaches in building performance of the business.

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Summarily, the above statistical analysis indicates that the independent variables in the study are business distance, cultural distance and the implementation approaches. Mukaka, MM. A guide to appropriate use of Correlation coefficient in medical research.  Malawi Medical Journal 24, no. September 2012), 69-71. Rebekić, Andrijana, Zdenko Lončarić, Sonja Petrović, and Sonja Marić.

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