How the headquarter-subsidiary manager relationship impacts on the subsidiary manager’s decision making

Abstract

This research examined the relationship between headquarter managers and subsidiary managers who work in multinational companies. It looked at how this relationship empowers the subsidiary manager to make decisions. The study was conducted using Kanter’s theory of structural empowerment as the main theoretical framework. This was followed by comparing the HQ manager’s response to that of the subsidiary manager. To collect the data, the research used a survey questionnaire which was adapted from the conditions of work effectiveness-II (CWEQ-II) tool. The questionnaire was administered online. A total of 83 response were received. A statistical software was used to analyse the data and to test the hypothesis. The research found that the HQ-subsidiary manager relationship does empower the subsidiary manager’s decision making. This is due to that relationship allowing the subsidiary manager to have access to structural empowerment factors as per Kanter’s theory. The research also found that there was significant alignment between HQ and subsidiary managers on their perception of the subsidiary manager’s access to structural empowerment factor that enable decision making. One difference in their perception was found in their perception. This was on the subsidiary manager’s access to resources. Based on the results achieved, this research recommends that the factors in Kanter’s structural empowerment theory are utilised in the empowerment of subsidiary managers.