Organizational Control and Goal Conflicts in Headquarters-Subsidiary Relationships: An Agency Theory Perspective
Type
conference paper
Date Issued
2015-06-27
Author(s)
Editor(s)
Mudambi, Ram
Kiyak, Tunga
Abstract
In this study, we investigate the interaction of socialization, goal conflicts and behavioral control in headquarters-subsidiary relationships. We take a modern agency perspective and test assumptions of relationship multiplicity, within-subsidiary heterogeneity and multiple principals in an empirical model using 131 observations that cover the full configuration of a European insurance corporation. Our findings suggest that socialization reduces goal conflicts between central and local organizational units, contingent upon task programmability and influence of a second principal. Further, we qualify that goal conflicts mediate the relationships between socialization and behavioral controls only under certain circumstances. The primary contribution of this study is that it advances agency theory to more complex conceptualizations for applications in headquarters-subsidiary relationships.
Language
English
Keywords
Headquarters-subsidiary relationship
agency theory
organizational control
goal conflict
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Publisher
Academy of International Business
Start page
1
End page
34
Pages
34
Event Title
57th Academy of International Business (ABI) Annual Meeting
Event Location
Bengaluru, India
Event Date
27.-30.06.2015
Subject(s)
Division(s)
Eprints ID
240734