Subsidiary Strategy, Headquarters Control, and Subsidiary Performance: Contingency Approach

This paper examines the subsidiary strategy-headquarters control-subsidiary performance relationship. By simultaneously examining the three relationships, this paper will advance propositions concerning how the fit between the subsidiary strategy and the level of headquarters control is related to subsidiary performance. The level of headquarters control is defined as the level of centralization or decentralization in the decision-making authority that a headquarters exercises over its foreign subsidiary.