Headquarters’ Attention and Its Effect on Subsidiary Performance
Drawing on a sample of 283 subsidiaries in three countries, we investigate how headquarters’ attention affects subsidiary
Scholars have recently argued that top management’s attention is the most critical, scarce and sought-after resource in organizations
(Haas and Hansen 2001; Bouquet and Birkinshaw 2008). However, the question how headquarters’ attention affects subsidiary companies remains largely unexplored.
Our study shows that subsidiaries which have a high level of strategic choice and receive attention from headquarters perform better than their peers. More specifically, we find that the interactions of
subsidiaries’ autonomy, inter-unit power and initiatives with attention increase subsidiary performance.