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Headquarters attention and its effect on subsidiary performance

Journal

Management International Review

Subject

Strategy and Entrepreneurship

Authors / Editors

Ambos T C;Birkinshaw J M

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


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