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The Board of Directors in Foreign Subsidiaries

Author

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  • Laurent Leksell

    (Stockholm School of Economics)

  • Ulf Lindgren

    (Stockholm School of Economics)

Abstract

This paper addresses the following questions: What role does the board of directors play in wholly and partly owned foreign subsidiaries in MNCs? What is the composition and responsibility of the subsidiary boards? What are the potential determinants of the role of effectiveness of the board? Three different roles are identified. The research indicates that certain strategic, structural, and environmental variables may explain differences in board functioning in different MNCs. The paper also discusses some factors which influences the functioning of the subsidiary board within an MNC.© 1982 JIBS. Journal of International Business Studies (1982) 13, 27–38

Suggested Citation

  • Laurent Leksell & Ulf Lindgren, 1982. "The Board of Directors in Foreign Subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 13(1), pages 27-38, March.
    • Handle: RePEc:pal:jintbs:v:13:y:1982:i:1:p:27-38
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    Citations

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    Cited by:

    1. Dolgopyatova, Tatiana & Libman, Alexander & Yakovlev, Andrei, 2018. "Unintended Benefits of Empowering Boards in Conglomerates: A Case Study of AFK Sistema," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(2), pages 177-202.
    2. Afzali, Haaron & Martikainen, Minna & Oxelheim, Lars & Randoy, Trond, 2020. "On the Role of Internationalization of Firm-Level Corporate Governance – The Case of Audit Committees," Working Paper Series 1370, Research Institute of Industrial Economics.
    3. Emiliano Carlo & Fabio Fortuna & Silvia Testarmata, 2016. "Boundaries of the business model within business groups," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(2), pages 321-362, June.
    4. Ruth V. Aguilera & Valentina Marano & Ilir Haxhi, 2019. "International corporate governance: A review and opportunities for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 457-498, June.
    5. Ilya R. P. Cuypers & Gokhan Ertug & Jeffrey J. Reuer & Ben Bensaou, 2017. "Board representation in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 38(4), pages 920-938, April.
    6. Du, Yan & Deloof, Marc & Jorissen, Ann, 2015. "The Roles of Subsidiary Boards in Multinational Enterprises," Journal of International Management, Elsevier, vol. 21(3), pages 169-181.
    7. Muellner, Jakob & Klopf, Patricia & Nell, Phillip C., 2017. "Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries," Journal of International Management, Elsevier, vol. 23(3), pages 306-325.
    8. Jeffrey J. Reuer & Elko Klijn & Constantinos S. Lioukas, 2014. "Board involvement in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 35(11), pages 1626-1644, November.
    9. Luo, Yadong, 2005. "How does globalization affect corporate governance and accountability? A perspective from MNEs," Journal of International Management, Elsevier, vol. 11(1), pages 19-41, March.
    10. Sapovadia, Vrajlal & Madhani, Pankaj, 2015. "Corporate Governance and Disclosure Practices in India: MNC Subsidiaries versus Domestic Cross-Listed Firms," MPRA Paper 96043, University Library of Munich, Germany.

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