Headquarters' attention and its effect on subsidiary performance

Ambos, Tina C and Birkinshaw, Julian (2010) Headquarters' attention and its effect on subsidiary performance. Management International Review, 50 (4). pp. 449-469. ISSN 0938-8249

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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.

Item Type: Article
Keywords: Headquarters-subsidiary relationships Attention Strategic choice Subsidiary performance
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences
Depositing User: Joy Blake
Date Deposited: 09 Apr 2013 10:48
Last Modified: 09 Apr 2013 10:48
URI: http://sro.sussex.ac.uk/id/eprint/44160
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