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Conflict Resolution in Headquarters-Subsidiary Relationships: The Roles of Regulatory Fit and Moral Emotions

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC

ISBN: 978-1-78635-370-2, eISBN: 978-1-78635-369-6

Publication date: 10 August 2016

Abstract

We demonstrate the role of regulatory fit and moral emotions, that is, contempt and anger, in influencing conflict resolution between the headquarters and subsidiary boundary spanners. We develop a theoretical framework, which integrates literature on international business and headquarters-subsidiary relationships with regulatory focus, moral emotions, and conflict resolution. The chapter outlines the relationships between the regulatory focus of a headquarters’ boundary spanner, and his or her manner of engagement, conflict sensitivity, violation of code, moral emotions, and the way conflicts are resolved. The theoretical framework developed here provides a starting point for future research on bargaining processes between boundary spanners of a multinational corporation (MNC). This chapter is the first one to discuss regulatory focus, and moral emotions, in the contexts of a MNC headquarters-subsidiary relationship.

Keywords

Citation

Kumar, R. and Gammelgaard, J. (2016), "Conflict Resolution in Headquarters-Subsidiary Relationships: The Roles of Regulatory Fit and Moral Emotions", Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC (Research in Global Strategic Management, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 121-140. https://doi.org/10.1108/S1064-485720160000017005

Publisher

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Emerald Group Publishing Limited

Copyright © 2016 Emerald Group Publishing Limited