The legitimacy of subsidiary issue selling: Balancing positive & negative attention from corporate headquarters |
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Institution: | 1. Queen’s Management School, Queen’s University Belfast, Riddel Hall, 185 Stranmillis Road, Belfast, Northern Ireland BT9 5EE, United Kingdom;2. Leadership & Talent Institute, DCU Business School, Dublin City University, Glasnevin, Dublin 9, Ireland;1. Eli Broad Graduate School of Management, Michigan State University, 632 Bogue Street, East Lansing, MI 48824, United States;2. Department of Management, College of Business Administration, San Diego State University, 5500 Campanile Drive, San Diego, CA 92182, United States;3. James K. Batten Eminent Scholar Chair in International Business, Department of Management and International Business, College of Business Administration, Florida International University, 11200 S.W. 8th St, Mango 448, Miami, FL 33199, United States;1. School of Management, Curtin Business School, Curtin University, Kent Street, Bentley, 6102 Western Australia, Australia;2. Shenzhen International Business School, Shenzhen University, 3688 Nanhai Road, Shenzhen 518060, Guangdong, China;1. University of Barcelona, Faculty of Economy and Business Administration, Department of Business Administration, Av. Diagonal 690, 08034 Barcelona, Spain;2. University of Valencia, Faculty of Economics, Department of Management, Av. dels Tarongers s/n., 46022 Valencia, Spain |
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Abstract: | We consider how in issue selling, subsidiaries draw on different forms of legitimacy to attract corporate headquarters’ (CHQ) positive attention and minimise negative CHQ attention. Through case study evidence, we find that directing CHQ attention to subsidiary issues needs to be executed as a balancing act through forms of subsidiary legitimacy, namely; the personal legitimacy of key individuals at the subsidiary; consequential legitimacy vis-à-vis peer subsidiaries; and linkage legitimacy in the local environment. We develop a typology of subsidiary issue-selling roles and illustrate how negative CHQ attention results from a failure to legitimise issue selling. |
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Keywords: | Issue selling Negative attention Positive attention Subsidiary legitimacy CHQ-subsidiary relations MNE |
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