Autonomy and Procedural Justice: A Framework for Evaluating Subsidiary Strategy

Abstract

Using the well-supported dimensions of autonomy and procedural justice, a four-quadrant model of subsidiary strategy is proposed and a four-part typology hypothesized (partner, collaborator, militant, and vassal subsidiaries). A clustering process is used to develop a four-group taxonomy that corresponds with the induced model. The four groups of subsidiaries are analysed across seven alternative strategic dimensions – integration, responsiveness, coordination, configuration, market scope, product scope, and value-added scope. The external and internal validity of the framework is confirmed and its utility discussed in terms of subsidiary's movement from one strategy state to another.