Headquarters attention and its effect on subsidiary performance
Journal
Management International Review
Subject
Strategy and Entrepreneurship
Publishing details
Authors / Editors
Ambos T C;Birkinshaw J M
Biographies
Publication Year
2010
Abstract
•Drawing on a sample of 283 subsidiaries in three countries, we investigate how headquarters’ attention affects subsidiary performance. •Scholars have recently argued that top management’s attention is the most critical, scarce and sought-after resource in organizations (Haas and Hansen 2001; Bouquet and Birkinshaw 2008). However, the question how headquarters’ attention affects subsidiary companies remains largely unexplored. •Our study shows that subsidiaries which have a high level of strategic choice and receive attention from headquarters perform better than their peers. More specifically, we find that the interactions of subsidiaries’ autonomy, inter-unit power and initiatives with attention increase subsidiary performance.
Keywords
Headquarters-subsidiary relationships · Attention · Strategic choice ·
Available on ECCH
No