01-08-2010 | Research Article
Headquarters’ Attention and Its Effect on Subsidiary Performance
Published in: Management International Review | Issue 4/2010
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Abstract
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Drawing on a sample of 283 subsidiaries in three countries, we investigate how headquarters’ attention affects subsidiary performance.
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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.