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Headquarters’ Attention and Its Effect on Subsidiary Performance

Author

Listed:
  • Tina C. Ambos

    (Johannes Kepler University)

  • Julian Birkinshaw

    (London Business School)

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.

Suggested Citation

  • Tina C. Ambos & Julian Birkinshaw, 2010. "Headquarters’ Attention and Its Effect on Subsidiary Performance," Management International Review, Springer, vol. 50(4), pages 449-469, August.
    • Handle: RePEc:spr:manint:v:50:y:2010:i:4:d:10.1007_s11575-010-0041-4
    DOI: 10.1007/s11575-010-0041-4
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