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Corporate Parenting Style In The Global Economy


  • Igor Gurkov

    () (National Research University Higher School of Economics)


The paper provides a summary of the existing typologies of corporate parenting styles and discovers the missing elements in the theoretical constructs. New theoretical constructs fill the gaps. The paper presents a new typology of corporate parenting style by combining “adding value to subsidiaries by their corporate parent(s)” and “extracting value from subsidiaries by their corporate parent(s).” The four-type typology of corporate styles outlines the different levels of value addition and value extraction and various degree of reciprocity of both processes. This paper determines the most important factors that affect the selection of corporate parenting styles. It postulates that the multinational corporation should simultaneously exhibit different parenting styles towards their subsidiaries and should be ready to swiftly amend their parenting styles to reflect the changes in a subsidiary’s strategy and its motives for corporate ownership.

Suggested Citation

  • Igor Gurkov, 2014. "Corporate Parenting Style In The Global Economy," HSE Working papers WP BRP 20/MAN/2014, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:20man2014

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    References listed on IDEAS

    1. Taggart, James & Hood, Neil, 1999. "Determinants of autonomy in multinational corporation subsidiaries," European Management Journal, Elsevier, vol. 17(2), pages 226-236, April.
    2. Schmid, Stefan & Dzedek, Lars R. & Lehrer, Mark, 2014. "From Rocking the Boat to Wagging the Dog: A Literature Review of Subsidiary Initiative Research and Integrative Framework," Journal of International Management, Elsevier, vol. 20(2), pages 201-218.
    3. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    4. Rabbiosi, Larissa, 2011. "Subsidiary roles and reverse knowledge transfer: An investigation of the effects of coordination mechanisms," Journal of International Management, Elsevier, vol. 17(2), pages 97-113, June.
    5. Andersson, Ulf & Forsgren, Mats, 1996. "Subsidiary embeddedness and control in the multinational corporation," International Business Review, Elsevier, vol. 5(5), pages 487-508, October.
    6. Ulrich Pidun & Harald Rubner & Matthias Krühler & Robert Untiedt & Michael Nippa, 2011. "Corporate Portfolio Management: Theory and Practice," Journal of Applied Corporate Finance, Morgan Stanley, vol. 23(1), pages 63-76, January.
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    More about this item


    Corporate strategy; Corporate parenting style; International business; Strategic orientation; Motives for international expansion;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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