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When does the global mindset affect headquarters–subsidiary relationships?

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  • Jiang, Fuming
  • Travaglione, Tony
  • Liu, Li Xian
  • Li, Jizhong

Abstract

Drawing on the dynamic managerial capabilities perspective, we examine the effects of the global mindset of subsidiary managers on headquarters–subsidiary relationships and the moderating effects of their cognitive flexibility, overseas study experience, and exchanges with headquarters managers on the relationship. The analysis of dyadic survey data collected from managers at the headquarters and subsidiaries of 312 Chinese multinational enterprises reveals that the subsidiary managers’ global mindset is positively associated with the quality of headquarters–subsidiary relationships. This association is stronger when the subsidiary managers exhibit higher cognitive personality flexibility and more overseas study experience but weaker when exchanges with the headquarters managers become more frequent.

Suggested Citation

  • Jiang, Fuming & Travaglione, Tony & Liu, Li Xian & Li, Jizhong, 2021. "When does the global mindset affect headquarters–subsidiary relationships?," Journal of Business Research, Elsevier, vol. 136(C), pages 523-542.
    • Handle: RePEc:eee:jbrese:v:136:y:2021:i:c:p:523-542
    DOI: 10.1016/j.jbusres.2021.08.002
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