Influential Factors within MNCs: From an Extended Agency Perspective

Sammanfattning: Purpose: The aim of this thesis is to give further understanding of the relationship between subsidiaries and HQ by applying it to the broader agency theory perspective. By providing empirical material from a case study, the purpose is to further enrich and complement the agency theory applied to the context of subsidiary and HQ relationship. Methodology: This study is a qualitative case study of the relationship between subsidiary and headquarters with elements of both an inductive and deductive approach. Semi-structured interviews with representatives from DNB’s three ventures in Warsaw, Oslo and Stockholm were conducted. A theoretical framework was developed and revised by the empirical findings. Theoretical perspectives: In studying the relationship between subsidiary-HQ from an agency perspective this thesis follows the narrow and broad perspective of agency theory, applied to the relationship of subsidiary-HQ within an MNC. Most importantly it takes the literature a step further as it introduces an extended agency perspective on the relationship, consisting of three extensive variables that have never before been added to this kontext. Empirical foundation: The empirical data consists of 25 semi-structured interviews with employees from DNB HQ in Oslo, branch DNB Stockholm and subsidiary DNB Poland. Conclusions: The result from this case study is a revised theoretical framework that indicates that an extended perspective of the agency theory is applicable when studying the relationship between subsidiary-HQ. Three additional factors were found to affect the relationship – trust, attention and path dependency. Traditional agency theory measure goal congruence, additionally this thesis argues that goal achievement and goal commitment should be added when studying the relationship between subsidiary-HQ.