BX2174 Critical Literature Review: Manufacturing Sector Autonomy

This literature review examines the influence of subsidiary autonomy on performance within the manufacturing sector, particularly under conditions of uncertainty. It analyzes journal articles to understand how companies manage autonomy, differentiating between strategic and operational autonomy, and their respective impacts on subsidiary performance. The review also explores the role of knowledge management in subsidiary performance, considering cultural differences and their effects. A critical assessment of the findings includes a discussion of the relevance of the Battle of Mogadishu as an analogy for understanding the complexities of implementing autonomy strategies. The review concludes that autonomy, when strategically implemented, can significantly influence manufacturing processes and market performance, highlighting the importance of aligning subsidiary behavior with overall business strategy.

Running head: MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
Name of the Student
Name of the University
Author Note

1MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
Table of Contents
Introduction................................................................................................................................2
How companies manage autonomy in relation to their performance....................................2
Impact of knowledge management on subsidiary performance.............................................3
Reasons to consider the articles for the review......................................................................4
Critical assessment of the findings.........................................................................................5
Reasons why the Mogadishu article still counts....................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................8

2MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
Introduction
This paper is focused on to explore how subsidiary autonomy influences on the
subsidiary performance under uncertainty. In every organisation different levels of autonomy
performs the provision of goal orientation, task efficacy, task value, and the performance of
people in the organisation (Arnold et al., 2015). Thus, the report would analyse through the
reviewed paper in this regard mainly by viewing journal articles that has been created so far
and which are relevant to the study below. The literature review put forward how the
companies and handling the manufacturing sector including autonomy and performance in
relation to the business propagation. Then the impact of knowledge management on
subsidiary performance would be justified with the reasons to consider the articles for the
review. The critical assessment of the findings should be made with the justification of the
Mogadishu article in this regard. The people would clearly state why Mogadishu article still
counts as a valid example. Thus, a summarization would follow the conclusion to fulfil the
literature review.
Relationship between management of autonomy to performance of the
manufacturing industry
The findings in the journal articles are indicated that the presence of a strategic
autonomy within the organisation has formed and negative impact to the subsidiary
performance. On the other hand the operational autonomy that has been implemented within
an organisation has proven to be positively associated with that of the subsidiary
performances (Siegel, Siegel & MacMillan, 1988). On the other hand the mood of uncertainty
has a weakening effect and produces and negative strategic autonomy which affects the
autonomic subsidiary performance linkage. This also puts together the fact that subsidiary

3MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
autonomy has two categories, namely, operational autonomy and strategic autonomy.
Subsidiary autonomy and its category have different effects on the subsidiary performance,
which are both of these different aspects of subsidiary autonomy affect the subsidiary
performance in a different manner. The relationship between the subsidiary autonomy and
subsidiary performance has an impact on the selection of the subsidiaries in every
management mode within the organisation. When an organisation implements the use of
subsidiary performance within the business process, it has been found that the subsidiary
performance affects the business in a great man with providing the business groups in having
excessive amount of competitive advantages. However a business organisation needs to be
sure about the important behaviour of subsidiaries and if they are compatible with the overall
strategy of the business group. The authors Chen & Zheng (2018), states that there is a
relationship between the team autonomy that has been perceived as well as the performance
of the company which forms the highlighting commitment of an organisation and become the
mediating factor within the relationship between autonomy and company performance.
Impact of knowledge management on subsidiary performance
Knowledge management is the process within a business system that transforms
information from one department of the business process to another in limited and subtle
amount. The information transferred from one department to the other does not mean that
every worker within an organisation should be provided with all the information within the
business process (Mudambi & Navarra, 2015). However, proper knowledge management
needs to be present within an organisation to make sure that information is generated and
provided to all the relevant zones within an organisation and the decision making of an
organisation is dependent on the knowledge management.

4MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
Based on the previous studies that have been conducted so far on the concept of
autonomy it has been distinguished that subsidiary autonomy and operational autonomy are
different from each other. However, since a business organisation is dependent on the
knowledge management, both strategic autonomy and operational autonomy are dependent
on the knowledge management process. Subsidiary autonomy performs a single variable of
examination in the autonomic performance relationship. It is not just dependent on
knowledge management but also dependent on the cultural difference between different
countries. The performance of the same organisation may be different based on the countries
they are located in. it may be possible that one organisation is faring well in a country, where
on the other hand the performance of the organisation is somewhat troubled due to the
cultural difference of its location from the previous one. For example, in most extant
research, samples included subsidiaries in developed countries. As China is an emerging
economy, there is substantial difference from developed countries in institutions, markets,
laws and customs. The unique cultural, economic and political environment may affect the
subsidiaries’ autonomy–performance relationship in China.
Reasons to consider the articles for the review
The articles that have been reviewed for the literature review for understanding and
analysing the autonomy and performance in management sector have all been selected based
on the topic. On the other hand these journal articles have been presented on international
conferences based on their IEEE certifications. The journal articles are all relevant to the
subjects as well as provide a clean view about the article by presenting a structured
architecture. The flow of the article is also easy to read and does make the editor think further
beyond what has been already achieved within the paper. As per is personal discretion, the
journal articles that have been considered for this literature review at justified.

5MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
The articles present a clear idea about how the manufactured product, autonomy and
performance of a manufacturing item affects the entire manufacturing industry and the
market further.
Critical assessment of the findings
The findings in the journal articles are indicated that the presence of a strategic
autonomy within the organisation has formed and negative impact to the subsidiary
performance. This also puts together the fact that subsidiary autonomy has two categories,
namely, operational autonomy and strategic autonomy. Subsidiary autonomy and its category
have different effects on the subsidiary performance, which are both of these different aspects
of subsidiary autonomy affect the subsidiary performance in a different manner.
In another article the authors Garcia & Pintrich (1991), puts forward an idea that the
high level of performance can be achieved with the help of subsidiary performances. The
state that the strategic benefit objectives has no interference with sound financial decision
making. Therefore the investments might appear pretty exciting when from a corporate
perspective subsidiary autonomy influences the performance of a manufacturing product. In a
much later time it might not appear that due to the technological and marketing area has
gained a lot of resources and lost his attractiveness rather than producing opportunities like it
had promised.
Critically speaking, since a business organisation is dependent on the knowledge
management, both strategic autonomy and operational autonomy are dependent on the
knowledge management process. Subsidiary autonomy performs a single variable of
examination in the autonomic performance relationship. It is not just dependent on

6MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
knowledge management but also dependent on the cultural difference between different
countries.
Reasons why the Mogadishu article still counts
As it is a known fact that the battle of Mogadishu in the year 1993, still a debatable
fact that if the war was at all a success or a failure, at a much later time it is now considered
to be a strategic removed by the US black hawk down as well as United States of America to
end the civil war as well as the famine that stroke in Somalia.
This is a relevant fact in this regard for manufacturing sector and the way autonomy
and performance affect the performance of a manufacturing sector is also somewhat similar
to the speculation behind the battle of Mogadishu. At the point of time in autonomy and
performance at being related to the manufacturing sector can autonomy is been introduced as
a strategy to revise and improve performance, it is not understood at the beginning when the
ideas were just being implemented (Lazarova, Peretz & Fried, 2017). At this point of time
when business and technology runs hand in hand, it can be said that the implementation of
autonomy is by far the best possible way in which production of a manufacturing industry
can be handled. Both for the aspect of the manufacturing autonomous subsidiary, it can be
said that the misunderstood strategy is proving to be beneficial. Just like the Black Hawk
Dawn at Mogadishu, this strategy is also proving to be a beneficial strategy in the long run.
Conclusion
In conclusion, it can be said that the literature review clearly states that the effect of
autonomy and performance influences the manufacturing of a product in the industry and the
performance of the manufactured product in the market as well. This has been analysed

7MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
through the report with the analysis of the literatures conducted in this regard mainly by
viewing journal articles that has been created so far and which are relevant to the study
below. The literature review puts forward how the companies are handling the manufacturing
sector including autonomy and performance in relation to the business propagation. Then the
impact of knowledge management on subsidiary performance has been justified with the
reasons to consider the articles for the review. The critical assessment of the findings has
been created with the justification of the Mogadishu article in this regard. The people would
clearly state why Mogadishu article still counts as a valid example.

8MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
References
Arnold, J. M., Javorcik, B., Lipscomb, M., & Mattoo, A. (2015). Services reform and
manufacturing performance: Evidence from India. The Economic Journal, 126(590),
1-39.
Barron, A., Pereda, A., & Stacey, S. (2017). Exploring the performance of government affairs
subsidiaries: A study of organisation design and the social capital of European
government affairs managers at Toyota Motor Europe and Hyundai Motor Company
in Brussels. Journal of World Business, 52(2), 184-196.
Bresciani, S., & Ferraris, A. (2016). Innovation-receiving subsidiaries and dual
embeddedness: impact on business performance. Baltic Journal of Management,
11(1), 108-130.
Cavanagh, A., Freeman, S., Kalfadellis, P., & Cavusgil, S. T. (2017). How do subsidiaries
assume autonomy? A refined application of agency theory within the subsidiary‐
headquarters context. Global Strategy Journal, 7(2), 172-192.
Chen, Z., & Zheng, L. (2018). How does subsidiary autonomy influence performance? the
moderating role of uncertainty. Nankai Business Review International, (just-
accepted), 00-00.
Dotson, P. B. (2016). The Successes and Failures of the Battle of Mogadishu and Its Effects
on US Foreign Policy. Channels: Where Disciplines Meet, 1(1), 3.
Garcia, T., & Pintrich, P. R. (1991). The Effects of Autonomy on Motivation, Use of
Learning Strategies, and Performance in the College Classroom.

9MANUFACTURING SECTOR – AUTONOMY AND PERFORMANCE
Lazarova, M., Peretz, H., & Fried, Y. (2017). Locals know best? Subsidiary HR autonomy
and subsidiary performance. Journal of World Business, 52(1), 83-96.
Mudambi, R., & Navarra, P. (2015). Is knowledge power? Knowledge flows, subsidiary
power and rent-seeking within MNCs. In The Eclectic Paradigm (pp. 157-191).
Palgrave Macmillan, London.
Sangvic, M. R. N. (2015). Battle of Mogadishu: anatomy of a failure. Pickle Partners
Publishing.
Siegel, R., Siegel, E., & MacMillan, I. C. (1988). Corporate venture capitalists: Autonomy,
obstacles, and performance. Journal of Business Venturing, 3(3), 233-247.
Zhu, H., Xia, J., & Makino, S. (2015). How do high-technology firms create value in
international M&A? Integration, autonomy and cross-border contingencies. Journal of
World Business, 50(4), 718-728.