Despite the growing importance and the current trend of a globalizing economy, relatively little is known about the roles and responsibilities of subsidiary board of directors and how they are influenced by various drivers. This thesis focuses on and investigates the roles and responsibilities of a subsidiary board and which firm-related (internal) and environmental-related(external) drivers could potentially influence these roles. From the existing literature on corporate governance four major roles are derived for the SB, namely a monitoring, advising, internal and external role. Qualitative data from 8 in-depth interviews with board members of a global subsidiary company provided a clear set of responsibilities in line with the four board roles. Furthermore, in this case firm growth, acquisitions and the organization at the parent level are seen as major internal drivers of board responsibilities. Economical downturn, industry changes and technological innovations are seen as critical external
drivers of board responsibilities in a subsidiary company. Additionally, this thesis shows that in times of economical recession the board tends take on a more
monitoring focused role. Smaller firms and acquisitions lead to a strong internal focus whereas the changes in the industry and a larger firm size result in more external
responsibilities. Finally, changes at the level of the parent and technological innovations lead to a more service or advising role of the board of directors in subsidiary boards. This thesis highlights the conditions under which the roles and responsibilities could change or shift and contributes to the literature as it presents
evidence that agency theory as well as resource dependence theory are relevant in the analysis of board responsibilities in subsidiary companies.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Introduction
- Problem Definition
- Research Questions
- Empirical Context
- Contributions
- Outline
- Theoretical Framework
- Board of Directors
- Board Size
- Board Composition and Structure
- Board Roles and Responsibilities
- Subsidiary Boards
- Subsidiary Board Roles
- Subsidiary Board Responsibilities
- Determinants of board responsibilities
- Industry Level Factors
- Firm Level Factors
- Research Questions and Conceptual Framework
- Methods
- Research Method: Case Study
- Research Context
- Research Design
- Data Analysis
- Data Collection
- Triangulation of results
- Validity and reliability of the study
- Validity
- Reliability
- Findings
- Board Roles and Responsibilities
- Internal Role
- External Role
- Monitoring Role
- Advising Role
- Determinants of Board Roles and Responsibilities
- Firm Size & Complexity
- Acquisitions
- Parent Organization
- Economical Uncertainty
- Industry Changes
- Technology & Innovation
- Summary of Research Results
- Correlation with Theory
- Firm level Characteristics
- Environmental Uncertainty
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis investigates the roles and responsibilities of subsidiary boards and the factors that influence them. The research focuses on firm-related and environmental-related drivers of board responsibilities, exploring how they shape the board's role in a global subsidiary company.
- The roles and responsibilities of subsidiary boards
- The influence of firm-related (internal) and environmental-related (external) drivers on board responsibilities
- The impact of economic uncertainty, industry changes, and technological innovations on subsidiary board responsibilities
- The relationship between board responsibilities and firm size, acquisitions, and the parent organization
- The applicability of agency theory and resource dependence theory in understanding board responsibilities in subsidiary companies
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The introduction defines the research problem, outlines the research questions, and describes the empirical context of the study. It also discusses the contributions of the thesis and provides an overview of the structure.
- Theoretical Framework: This chapter provides a theoretical foundation for the study. It reviews the literature on boards of directors, subsidiary boards, and the determinants of board responsibilities. It defines key concepts, including board size, composition, structure, roles, and responsibilities, and discusses the relevance of agency theory and resource dependence theory to the study.
- Methods: This chapter explains the research methodology employed in the study. It outlines the case study approach, the research context, and the research design, including data analysis, data collection, and triangulation of results. It also addresses the validity and reliability of the study.
- Findings: This chapter presents the findings of the research. It analyzes the roles and responsibilities of the subsidiary board in the case study, identifying internal and external roles, monitoring and advising roles. It then explores the determinants of board roles and responsibilities, including firm size and complexity, acquisitions, parent organization, economic uncertainty, industry changes, and technology and innovation.
Schlüsselwörter (Keywords)
This thesis explores the determinants of board responsibilities in subsidiary companies. Key themes include subsidiary board roles and responsibilities, firm-related and environmental-related drivers, economic uncertainty, industry changes, technological innovations, firm size, acquisitions, parent organization, agency theory, and resource dependence theory. The study uses qualitative data from in-depth interviews with board members of a global subsidiary company to understand the complex relationship between board responsibilities and various internal and external factors.
- Quote paper
- Riccardo Altenburg (Author), 2011, The determinants of roles and responsibilities of boards of directors in subsidiary companies, Munich, GRIN Verlag, https://www.grin.com/document/179814
