The Headquarters-Subsidiary Trench: Tracing Perception Gaps within the Multinational Corporation
Journal
European Management Journal
ISSN
0263-2373
ISSN-Digital
1873-5681
Type
journal article
Date Issued
2005-04-01
Author(s)
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.
Language
English
Keywords
Perception gaps
Strategic environment
Information flows
Subsidiary autonomy
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Pergamon
Publisher place
Oxford
Volume
23
Number
2
Start page
145
End page
153
Pages
9
Subject(s)
Division(s)
Eprints ID
218081