Fig.1. interaction effect between business distance and implementation of headquarters' practice on subsidiary nancial performanceJ 4 _ ---l---- High Implementation 2 _ + Low Implementation 1.5 Low Business Distance High Business Distance \fTable 1.1wpcndent, dependent and moderating variable constructs and scale reliability : Constructs and variable indicators 4' Cronbach's Alpha 4' '4 : Subsidiary Financial Performance? u1=0.810@ 9 (J Return on investment\" 'J (J Protability? 'J 4 Cash ow\" 'J (J Productivity'J 'J A Business Distance? a2=0.804@ 9 (J Legal and political system\" '4