The Boss Is Not My Boss - A study on the complexity of management within a multinational corporation
Sammanfattning: The management of multinational corporations have been studied for a long time, aiming at understanding how these large organizations can control their subsidiaries cross-border. Agency theory has been widely used for this purpose but has not yet explained what effect the parallel intended control from several principals has on its agents. By increasing the number of dyadic principal-agent relationships between a headquarter and its subsidiary, we develop on agency theory and further explore the complex management of multinational corporations. In a qualitative case study on an international company in the payment sector, we conduct ten semi-structured interviews with the subsidiary to explore how the interviewees experience having managers both in London and locally. The results show increased goal conflicts within the subsidiary and a slowed-down decision-making. Also, multiple principals with conflicting voices complicates the subsidiary's local adaption and responsiveness to the local market.
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