Quotation Geisler Asmussen, Christian, Foss, Nicolai J., Nell, Phillip C. 2019. The role of Procedural Justice for Global Strategy and Subsidiary Initiatives. Global Strategy Journal (GSJ). 9 (4), 527-554.


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Abstract

The global strategy literature highlights the role of headquarters (HQ) in realizing global integration benefits while enabling independent subsidiary strategic initiatives. We construct a game‐theoretic model of the interaction between HQ and subsidiaries, and, building on procedural justice theory, we analyze the motivational costs that can result from the anticipation or realization of HQ intervention in subsidiary initiatives. We also analyze the implications for MNC‐level value creation when HQ managers, fearing subsidiary managers’ emotion‐based reactions, refrain from intervening. We derive a number of counter‐intuitive results, for example, that good HQ behavior may involve forgoing opportunities for value creation, and that procedural justice systems may sometimes be counterproductive.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Global Strategy Journal (GSJ)
Citation Index SSCI
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title The role of Procedural Justice for Global Strategy and Subsidiary Initiatives
Volume 9
Number 4
Year 2019
Page from 527
Page to 554
Reviewed? Y
URL https://onlinelibrary.wiley.com/doi/full/10.1002/gsj.1341
DOI https://doi.org/10.1002/gsj.1341
Open Access N

Associations

People
Nell, Phillip C. (Details)
External
Foss, Nicolai J. (Bocconi University, Italy)
Geisler Asmussen, Christian (Copenhagen Business School, Denmark)
Organization
Global Business and Trade DP (Details)
Institute for International Business IN (Details)
International Business (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
2965 Knowledge management (Details)
5234 Administrative science (Details)
5307 Business and management economics (Details)
5324 Organizational research (Details)
5333 Business management (Details)
5915 Economic geography (Details)
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