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The Headquarters-subsidiaries Trench:: Tracing Perception Gaps Within The Multinational Corporation

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  • Chini, Tina
  • Ambos, Björn
  • Wehle, Katrin

Abstract

The emergence of perception gaps between headquarters and subsidiaries has an important bearing on research practice as well as on managerial issues. This study is among the first to systematically investigate the link between the MNC unit's strategic environment and perception gaps. Evidence was found that certain strategic environments bear a higher risk for perception gaps concerning information flows between headquarters and subsidiaries and the subsidiaries' autonomy. Our results also confirm that tense perception gaps have a negative effect on managers' satisfaction and, thus, pose a threat to the company's operations. Collectively, our findings have an impact on research practice as well as on managerial issues.

Suggested Citation

  • Chini, Tina & Ambos, Björn & Wehle, Katrin, 2005. "The Headquarters-subsidiaries Trench:: Tracing Perception Gaps Within The Multinational Corporation," European Management Journal, Elsevier, vol. 23(2), pages 145-153, April.
    • Handle: RePEc:eee:eurman:v:23:y:2005:i:2:p:145-153
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    Citations

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    Cited by:

    1. Florian Becker-Ritterspach & Christoph Dörrenbächer, 2011. "An Organizational Politics Perspective on Intra-firm Competition in Multinational Corporations," Management International Review, Springer, vol. 51(4), pages 533-559, August.
    2. Fan, Di & Cui, Lin & Li, Yi & Zhu, Cherrie J., 2016. "Localized learning by emerging multinational enterprises in developed host countries: A fuzzy-set analysis of Chinese foreign direct investment in Australia," International Business Review, Elsevier, vol. 25(1), pages 187-203.
    3. Ambos, Björn & Kunisch, Sven & Leicht-Deobald, Ulrich & Schulte Steinberg, Adrian, 2019. "Unravelling agency relations inside the MNC: The roles of socialization, goal conflicts and second principals in headquarters-subsidiary relationships," Journal of World Business, Elsevier, vol. 54(2), pages 67-81.
    4. Roger Schweizer & Katarina Lagerström & Johan Jakobsson, 2021. "Headquarters–subsidiary interaction during the introduction of a value product in India," Asian Business & Management, Palgrave Macmillan, vol. 20(5), pages 666-688, November.
    5. Zhu, Cherrie Jiuhua & Cooper, Brian K. & Fan, Di & De Cieri, Helen, 2013. "HR practices from the perspective of managers and employees in multinational enterprises in China: Alignment issues and implications," Journal of World Business, Elsevier, vol. 48(2), pages 241-250.
    6. Björn Ambos & Volker Mahnke, 2010. "How Do MNC Headquarters Add Value?," Management International Review, Springer, vol. 50(4), pages 403-412, August.
    7. Dörrenbächer, Christoph & Gammelgaard, Jens, 2010. "Multinational corporations, inter-organizational networks and subsidiary charter removals," Journal of World Business, Elsevier, vol. 45(3), pages 206-216, July.
    8. Lukas Isenberg & Susanne Kreiter & Roland Helm & Christian Schmitz, 2022. "Marketing control in international headquarters-subsidiary working relationships of industrial goods firms: the role of environmental context," Journal of Business Economics, Springer, vol. 92(6), pages 1035-1064, August.
    9. Igor B. Gurkov & Michael J. Morley, 2017. "Contributions Towards a Renewed Debate on Multinational Headquarter-Subsidiary Relations:Subsidiary Mandates, Corporate Parenting Styles and Collective Psychological Contracts," HSE Working papers WP BRP 55/MAN/2017, National Research University Higher School of Economics.

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