Appendix III – Pearson Correlation
Variables Mean SD (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
(1) Exploration 4.180 1.606 1.000
(2) Exploitation 4.639 1.627 .758** 1.000
(3) Innovation 4.409 1.515 .937** .938** 1.000
(4) Dynamic Capabilities 2.720 1.315 .477** .553** .550** 1.000
(5) Government Effectiveness (GE) 1.472 0.411 .099* .096* .104* -.009 1.000
(6) Indulgent & Restraint (IVR) 56.29 13.767 .096* .114* .112* .031 .590** 1.000
(7) Management Level 1.59 1.251 .006 .031 .020 .044 .046 .073 1.000
(8) Geographical Focus 3.04 1.730 .056 .037 .050 .028 -.110* .045 -.053 1.000
(9) R&D Intensity 0.239 1.407 .037 -.024 .007 .015 .020 .047 -.022 .076 1.000
(10) R&D Involvement 0.089 0.189 .024 .010 .018 -.026 -.038 .021 .068 -.039 .001 1.000
(11) R&D Core Activity 0.679 0.467 .056 .050 .056 -.023 -.043 -.062 -.063 .028 -.058 -.031 1.000
* Correlation is significant at the 0.05 level (2-tailed).
**Correlation is significant at the 0.01 level (2-tailed).
Table 3 illustrates the correlation matrix of independent, dependent, and control variables used in this study, considering the sample size of n = 456 observations of foreign
subsidiaries. The variables' significance level of correlations can be identified through the sign of *, **, and ***, disclosing 0.1, 0.05, and 0.01 significance levels, respectively.
Exploration represents the subsidiary ability to innovate, discover, and "learn-by" by experimentation. Exploitation denotes the distinction between the amelioration of a
subsidiary's existing technology and the invention of a new. Innovation depicts a combination of the subsidiary's exploration and exploitation outcome. Dynamic Capabilities
represent the subsidiary's ability to sense, seize, and reconfigure its internal and external competencies to conquer the constantly changing business environment. Government
Effectiveness denotes the quality and independence of public institutions from the political influence. Indulgent vs Restraint depict the societal norms in which an indulgent
society reflects how individuals try to control their desires and impulses. The restrained society suppresses gratification of needs and determines it by utilizing strict social
norms (Hofstede-Insights, 2022; Hofstede-Insights, 2022). Management Level denotes the number of management levels present in the subsidiary in 2010 and 2011.
Geographical Focus depicts the subsidiary's geographical location from the parent company. R&D Intensity denotes the subsidiary's research and development efforts (e.g.,
expenditure) during the single fiscal year. R&D Involvement means the degree of subsidiary involvement in R&D practices and activities. R&D Core Activity indicates that
the subsidiary has the main core competence in research and development activities
- 65 -
, Appendix IV – Correlation Graphs.
Figure 2 Correlation between DCs and Exploration.
Figure 3 Correlation between DCs and Exploitation.
- 66 -
Variables Mean SD (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
(1) Exploration 4.180 1.606 1.000
(2) Exploitation 4.639 1.627 .758** 1.000
(3) Innovation 4.409 1.515 .937** .938** 1.000
(4) Dynamic Capabilities 2.720 1.315 .477** .553** .550** 1.000
(5) Government Effectiveness (GE) 1.472 0.411 .099* .096* .104* -.009 1.000
(6) Indulgent & Restraint (IVR) 56.29 13.767 .096* .114* .112* .031 .590** 1.000
(7) Management Level 1.59 1.251 .006 .031 .020 .044 .046 .073 1.000
(8) Geographical Focus 3.04 1.730 .056 .037 .050 .028 -.110* .045 -.053 1.000
(9) R&D Intensity 0.239 1.407 .037 -.024 .007 .015 .020 .047 -.022 .076 1.000
(10) R&D Involvement 0.089 0.189 .024 .010 .018 -.026 -.038 .021 .068 -.039 .001 1.000
(11) R&D Core Activity 0.679 0.467 .056 .050 .056 -.023 -.043 -.062 -.063 .028 -.058 -.031 1.000
* Correlation is significant at the 0.05 level (2-tailed).
**Correlation is significant at the 0.01 level (2-tailed).
Table 3 illustrates the correlation matrix of independent, dependent, and control variables used in this study, considering the sample size of n = 456 observations of foreign
subsidiaries. The variables' significance level of correlations can be identified through the sign of *, **, and ***, disclosing 0.1, 0.05, and 0.01 significance levels, respectively.
Exploration represents the subsidiary ability to innovate, discover, and "learn-by" by experimentation. Exploitation denotes the distinction between the amelioration of a
subsidiary's existing technology and the invention of a new. Innovation depicts a combination of the subsidiary's exploration and exploitation outcome. Dynamic Capabilities
represent the subsidiary's ability to sense, seize, and reconfigure its internal and external competencies to conquer the constantly changing business environment. Government
Effectiveness denotes the quality and independence of public institutions from the political influence. Indulgent vs Restraint depict the societal norms in which an indulgent
society reflects how individuals try to control their desires and impulses. The restrained society suppresses gratification of needs and determines it by utilizing strict social
norms (Hofstede-Insights, 2022; Hofstede-Insights, 2022). Management Level denotes the number of management levels present in the subsidiary in 2010 and 2011.
Geographical Focus depicts the subsidiary's geographical location from the parent company. R&D Intensity denotes the subsidiary's research and development efforts (e.g.,
expenditure) during the single fiscal year. R&D Involvement means the degree of subsidiary involvement in R&D practices and activities. R&D Core Activity indicates that
the subsidiary has the main core competence in research and development activities
- 65 -
, Appendix IV – Correlation Graphs.
Figure 2 Correlation between DCs and Exploration.
Figure 3 Correlation between DCs and Exploitation.
- 66 -
