Download e-book for kindle: Perception Gaps between Headquarters and Subsidiary by Andrea Daniel (auth.)
By Andrea Daniel (auth.)
In the prior many years, the proposal of differentiated subsidiary roles inside multinational community businesses has encouraged a large amount of study. unusually, the query of even if headquarters and subsidiary managers understand a undeniable subsidiary’s position within the similar method has been overlooked. Andrea Daniel not just compares headquarters and subsidiary managers’ perceptions of a subsidiary’s position, yet she analyzes the consequences of notion gaps for the headquarters-subsidiary courting. the writer develops a singular conceptual framework that permits to ascertain headquarters-subsidiary relationships and, particularly, the subsidiary function thought. This framework proposes headquarters-subsidiary clash because the major implication of conception gaps.
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Extra info for Perception Gaps between Headquarters and Subsidiary Managers: Differing Perspectives on Subsidiary Roles and their Implications
34 Denrell, Arvidsson & Zander (2004). As does Arvidsson, Denrell et al. examine headquarters and subsidiary managers’ ratings of subsidiary capabilities. , however, take a broader range of influencing variables into account. First, they consider headquarters managers’ knowledge about subsidiaries as well as their experience with the capability in question (Denrell, Arvidsson & Zander 2004, p. 1500). Both of these factors significantly reduce the gap between headquarters managers’ perception of subsidiary capability and the subsidiary managers’ own rating.
Birkinshaw et al. analyze perception gaps concerning the subsidiary’s role and confirm their existence (Birkinshaw et al. 2000). While influencing factors on perception gaps are not considered, the authors empirically examine the effects of perception gaps between headquarters and subsidiary managers. A relationship is shown between perception gaps regarding a subsidiary’s strategic role and the control headquarters exert over the subsidiary. The more a subsidiary overestimates its strategic role within an MNC, the higher is the level of control headquarters apply; a higher level of control in turn negatively influences the cooperation of the subsidiary and headquarters.
1995, p. 304, from a Harvard Business School case, shows that, in practice, even a dimension such as “market scope” which seems to be quite straightforward, is not always clearly defined and that such lack of definition can lead to problems for the MNC: “Most of the YKK subsidiaries over here engage in exports and YKK also exports from Japan. As a result, at least once or twice a year we find ourselves competing against the export department in Japan for the same customer. It has actually happened that a large customer has tried to play out one YKK subsidiary against the other… Such competition against each other is nonsense.
Perception Gaps between Headquarters and Subsidiary Managers: Differing Perspectives on Subsidiary Roles and their Implications by Andrea Daniel (auth.)