Organizational Control and Goal Conflicts in Headquarters-Subsidiary Relationships: An Agency Theory Perspective

Item Type Conference or Workshop Item (Paper)
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.

Authors Schulte Steinberg, Adrian; Kunisch, Sven & Ambos, Björn
Editors Mudambi, Ram & Kiyak, Tunga
Language English
Keywords Headquarters-subsidiary relationship, agency theory, organizational control, goal conflict
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area SoM - Responsible Corporate Competitiveness (RoCC)
Refereed Yes
Date 27 June 2015
Publisher Academy of International Business
Page Range 1-34
Number of Pages 34
Event Title 57th Academy of International Business (ABI) Annual Meeting
Event Location Bengaluru, India
Event Dates 27.-30.06.2015
Depositing User Adrian Schulte Steinberg
Date Deposited 27 Apr 2015 11:22
Last Modified 26 Jan 2018 15:44
URI: https://www.alexandria.unisg.ch/publications/240734

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Schulte Steinberg, Adrian; Kunisch, Sven & Ambos, Björn: Organizational Control and Goal Conflicts in Headquarters-Subsidiary Relationships: An Agency Theory Perspective. 2015. - 57th Academy of International Business (ABI) Annual Meeting. - Bengaluru, India.

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https://www.alexandria.unisg.ch/id/eprint/240734
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