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Author ORCID Identifier

https://orcid.org/0000-0002-4935-8834

Document Type

Campus-Only Access for Five (5) Years

Degree Name

Doctor of Philosophy (PhD)

Degree Program

Management

Year Degree Awarded

2020

Month Degree Awarded

February

First Advisor

Anurag Sharma

Second Advisor

Steven Floyd

Third Advisor

Anna Lamin

Fourth Advisor

Robert Nakosteen

Subject Categories

International Business | Strategic Management Policy

Abstract

In a Multinational Enterprise (MNE), the corporate headquarter (HQ) manages a complex organization comprising networks of subsidiaries operating across national boundaries in varied business environments of their respective host countries. As such, subsidiaries compete to gain the finite HQ attention to ensure engagement and resources. Scholars have theorized that HQ attention and the resources that follow support subsidiary financial performance equivocally. However, recent research has indicated that this positive relationship between HQ attention and subsidiary performance is moderated by factors such as subsidiary-level initiatives, and that attention brings with it administrative burdens that have the potential to undermine subsidiary performance.

In this dissertation, I examine the effects of HQ attention on both individual subsidiaries located in a single foreign country as well as on the overall country-level operations. Following extant scholarship, I theorize that HQ attention facilitates meaningful interactions between the MNE and subsidiary level managers, leading to mutually agreed objectives that provide the framework for resource flows to host country.

Moreover, I posit that for market seeking MNEs operating in a fast-growth emerging market country, the primary objectives would be growth. Thus, HQ attention and subsequent engagement with subsidiaries operating in an emerging market is likely to result in resource flows that support growth both of individual subsidiaries and of the overall country-level operations. Upon testing my model on a set of MNE subsidiaries operating in India, I find support for my main theoretical expectation that HQ attention is positively associated with subsidiary sales growth. I do not find, however, the expected association between HQ attention and the growth of host country operations; instead, my analysis shows that HQ attention leads to a reduction in the number of subsidiaries operating in the host country, suggesting perhaps some consolidation and rationalization of the overall country-level operations.

In sum, in this dissertation, I theoretically propose and empirically test the proposition that, for market-seeking subsidiaries operating in fast-growing emerging markets, HQ attention facilitates the development, implementation, and monitoring of host-country strategy.

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.

Available for download on Monday, February 01, 2021

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