The subsidiary has been the source of competitive advantage within MNE. The headquarters' (HQ) role also has the effect on the subsidiary influence. Besides the internal embeddedness for subsidiary, two perspectives "rationality" and "radical uncertainty" are proposed to the role of HQ in the MNE. By analyzing 173 subsidiaries in Taiwan, we find that the subsidiary's internal embeddedness has a positive effect on subsidiary influence. More specifically, we check the direct and moderating impact of HQ involvement on the subsidiary influence. The finding shows that HQ involvement negatively moderates the relationship between subsidiary's internal embeddedness and influence. This study contributes to better understanding the relationship between HQ and subsidiaries in the contemporary MNE.