Contributions

  • Toffel, Michael W. - Contributor
  • Harvard Business School - Contributor

Publication

2008 - Harvard Business School, Boston, Massachusetts

Language

English

Word Count

9,250 words, Guess

Page Count

37 pages

Identifiers

Description

A key role of corporate managers is to encourage subsidiaries to adopt innovative practices. This paper examines the conditions under which corporate managers use information provision to encourage subsidiaries' adoption of advanced management practices. Focusing on the distribution of expertise across subsidiaries, we propose that corporate managers elect an information provision strategy when (i) subsidiaries, on average, possess moderate levels of related expertise, (ii) subsidiaries exhibit significant heterogeneity in this expertise, and (iii) the subsidiaries are more diversified and less concentrated.

Subjects

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