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Björn Ambos
Title
Prof. Ph.D.
Last Name
Ambos
First name
Björn
Email
bjoern.ambos@unisg.ch
Phone
+41 71 224 7610
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PublicationUnravelling Agency Relations inside the MNC: The Roles of Socialization, Goal Conflicts and Second Principals in Headquarters-Subsidiary Relationships(Elsevier Science, 2019)In this paper, we propose and test an agency model for HQ-subsidiary relations. Drawing on classical agency assumptions, we develop a baseline hypothesis that links informal controls (i.e., socialization), HQ-subsidiary goal conflicts, and the HQ’s use of formal controls (i.e., behavioral controls). We subsequently introduce an important boundary condition, which reflects subsidiaries’ internal agency relations with subsidiary CEOs as second principals. More specifically, we argue that the baseline relationship only holds under low levels of second principal power. To test our model, we employed a unique study design with three parallel surveys addressing the agents and the two principals involved in 131 agency relations within one MNC.Type: journal articleJournal: Journal of World BusinessVolume: 54Issue: 2