Journal articles
Year
2026
Abstract
We examine the formal authority structure in multi-subsidiary firms, focusing on co-managed subsidiaries owned by two or more subsidiaries that belong to the same firm. We argue that a subsidiary is more likely to be co-managed when its need for intrafirm coordination, and thus, the need for information processing, is high. Accordingly, the likelihood that a subsidiary will be co-managed by other subsidiaries is positively associated with the extent of its relatedness and multimarket contact. Furthermore, the turbulence of the subsidiary’s environment moderates these relationships: it amplifies the relatedness and co-management link but attenuates the multimarket contact and co-management link, reflecting the complementary and substitutive nature of these interdependencies, respectively. Results of analyses based on the population of subsidiaries of manufacturing firms operating in France between 1999 and 2004 support the predictions. Our theory and findings have implications for the study of multi-authority structures more broadly, including project-based and matrix organizations, where similar demands shape the design of formal authority relationships across multiple superiors.
WORKIEWICZ, M. et SENGUL, M. (2026). Co-Managing In Multi-Subsidiary Firms: The Role Of Complementary And Substitutive Interdependencies. Organization Science.