Now showing 1 - 2 of 2
  • Publication
    Organizational Control and Goal Conflicts in Headquarters-Subsidiary Relationships: An Agency Theory Perspective
    (Academy of International Business, 2015-06-27) ; ; ;
    Mudambi, Ram
    ;
    Kiyak, Tunga
    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.
  • Publication
    Psychic Distance in 37 Years of IB Literature : Taking Stock and Setting the Course
    (Academy of International Business, 2012-06-30) ; ;
    Feinberg, Susan
    ;
    Kiyak, Tunga
    Psychic distance has become a central concept in international business research. Despite its frequent use, its application to a variety of phenomena has produced inconsistent study results. We argue that part of this empirical ambiguity can be attributed to causal ambiguity and inconsistency. In order to better understand these issues, a systematic search and content analysis of published research on the psychic distance concept were performed. Covering major journals in the fields of international business, management, strategy and marketing, we identify 348 relevant academic contributions, outline the development of the concept and find evidence for its reification. Addressing the concept's controversial contribution to the literature so far, we offer a theoretical advancement in regard to its conceptualization. We argue that future operationalizations will benefit from the inclusion of bilateral measurement which allows for the possibility of asymmetric psychic distances and its consequences. We propose a framework that captures the two dimensions of psychic distance asymmetry and highlight research areas that could benefit from its application.
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