Dual Headquarters Involvement in Multibusiness Firms

Phillip Christopher Nell; Philip Kappen; Henrik Dellestrand

Dual Headquarters Involvement in Multibusiness Firms

Phillip Christopher Nell, Philip Kappen, Henrik Dellestrand

Uppsala University

Research output: Contribution to conference › Paper › Research › peer-review

Abstract

The strategy literature has shown that headquarters involve themselves into subsidiary operations to add value. Yet, little is known about the extent to which multiple headquarters do so. Therefore, we investigate antecedents of corporate and divisional headquarters’ involvement in innovation development projects of subsidiaries. Analyses of 85 innovation development projects reveal that dual innovation importance (innovation that is important for the division and the rest of the firm), and dual dual embeddedness (innovating subsidiary is embedded both within the division and in the rest of the firm) lead to greater dual headquarters involvement, especially when the innovation development network is large. The results contribute to the literature on complex parenting and theory of selective headquarters involvement.

Original language	English
Publication date	2014
Number of pages	7
Publication status	Published - 2014
Event	Strategic Management Society 34th Annual International Conference. SMS 2014 - Madrid, Spain Duration: 20 Sep 2014 → 23 Sep 2014 Conference number: 34 http://madrid.strategicmanagement.net/

Conference

Conference	Strategic Management Society 34th Annual International Conference. SMS 2014
Number	34
Country/Territory	Spain
City	Madrid
Period	20/09/2014 → 23/09/2014
Internet address	http://madrid.strategicmanagement.net/

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N2 - The strategy literature has shown that headquarters involve themselves into subsidiary operations to add value. Yet, little is known about the extent to which multiple headquarters do so. Therefore, we investigate antecedents of corporate and divisional headquarters’ involvement in innovation development projects of subsidiaries. Analyses of 85 innovation development projects reveal that dual innovation importance (innovation that is important for the division and the rest of the firm), and dual dual embeddedness (innovating subsidiary is embedded both within the division and in the rest of the firm) lead to greater dual headquarters involvement, especially when the innovation development network is large. The results contribute to the literature on complex parenting and theory of selective headquarters involvement.

AB - The strategy literature has shown that headquarters involve themselves into subsidiary operations to add value. Yet, little is known about the extent to which multiple headquarters do so. Therefore, we investigate antecedents of corporate and divisional headquarters’ involvement in innovation development projects of subsidiaries. Analyses of 85 innovation development projects reveal that dual innovation importance (innovation that is important for the division and the rest of the firm), and dual dual embeddedness (innovating subsidiary is embedded both within the division and in the rest of the firm) lead to greater dual headquarters involvement, especially when the innovation development network is large. The results contribute to the literature on complex parenting and theory of selective headquarters involvement.

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