Business, Management and Accounting
3 years ago

HQ control impacts foreign subsidiary competency in surprising ways, study finds.

SSRN Electronic Journal
The Effects of Headquarters’ Levels of Control and Subsidiaries’ Local Experiences on Competency in Foreign Subsidiaries: A Quadratic Model Investigation of Korean Multinational Corporations
Jae-Eun Lee, Joo-Yeon Kang, Jung-Min Park

Paper Summary

The study looked at how Korean headquarters' control and foreign subsidiaries' local experiences affect competency in overseas subsidiaries. They found that too much control from HQ can hurt competency, but some control can help transfer knowledge. Also, foreign subsidiaries benefit from local experiences, but too much can offset the benefits.

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