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The dual role of the subsidiary CEO: - Its effect on control issues
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2007 (English)Independent thesis Advanced level (degree of Magister), 10 points / 15 hpStudent thesis
Abstract [en]

The position of the subsidiary CEO is characterized by its complexity in terms of the level of independence and control that s/he possesses. The subsidiary CEO is not only con-trolled by the parent company in certain aspects but in some cases also by the board of directors of the subsidiary. This raises questions about what the subsidiary CEO is left to decide by him/herself and if it is possible to infact categorize him/her as a middle manager? In order to gain more insight into these intriguing questions we formulated our purpose as follows: The purpose of this thesis is to examine how the subsidiary CEO controls the subsidiary consider-ing the dual role perspective. In addition, four research questions were formulated to support us in the search for answers to the amount of control that the subsidiary CEO has. The research questions were intended to the highlight the control aspect from different angles, and to discover what the parent company and board of directors controlled. In addition, we were also curious about whether it was possible for the subsidiary CEO to influence his/her superiors.

To enlighten us of the situation of the subsidiary CEO we made seven semi-structured interviews, whereof four with subsidiary CEOs. The three additional interviews were made with co-workers to the subsidiary CEOs. This was done to get a different perspective on the role of the subsidiary CEO. With the purpose and research questions as a base we asked questions on these topics and the answers were recorded and transcribed in order to give us a stable foundation to stand on before moving on to the analysis.

The findings confirmed our view that the CEOs in some cases, especially when it comes to larger financial decisions, are controlled by the parent company. Further, reports are sent regularly and the overall organizational vision has to be adopted by the subsidiary. On the other hand the subsidiary CEOs regards themselves as very independent when it comes to the management of the subsidiary. Indeed, we were able to see some general characteristics of the job of a subsidiary CEO, such as the freedom of formulating and implementing strategies for the subsidiary. In addition, they solely decide how to run the daily operations as well as deciding on questions concerning the personnel. Further, we conclude that the subsidiary CEOs can neither be categorized as merely a CEO or a middle manager, since our study shows that they are a combination of both. It is their level of independence which decides how to perceive their role and this varies from case to case. Finally, the level of control much depends on their relationship with the parent company as well as the sub-sidiary board of directors.

Place, publisher, year, edition, pages
2007. , 73 p.
Keyword [en]
Subsidiary CEO, Control, CEO, Middle manager, Dual roles
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-862OAI: oai:DiVA.org:hj-862DiVA: diva2:4609
Uppsok
samhälle/juridik
Supervisors
Examiners
Available from: 2007-06-25 Created: 2007-06-25

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
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More styles
Language
  • de-DE
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  • Other locale
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Output format
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