Abstract

AbstractWe build on extant literature of corporate strategy and diversification to unpack corporate effects and to better understand the antecedents that influence control mechanisms implemented on subsidiaries by their corporate parents. Utilizing data collected over the course of several years from 2704 subsidiaries and their 193 Iranian corporate parents, we find that, while related diversified corporations are likely to put a stronger emphasis on strategic controls, their ability to do so depends on corporate span, the corporate CEO's background, and the size of the corporate headquarters.

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