Managing Headquarters-Subsidiary Relations From a Knowledge Perspective: Strategies for Transnational Media Companies

Abstract

The purpose of this article is to analyze how transnational media companies manage their headquarters-subsidiary relations from a knowledge perspective. Based on the knowledge-based view of the firm and recent literature, hypotheses regarding the degrees of knowledge in- and outflow are derived, covering the determinants of subsidiary autonomy, corporate socialization, transmission channels, and geographic and cultural distance. The conceptual model is tested in a sample of 30 subsidiaries of German publishing houses by applying a partial least squares path analysis. Results suggest that knowledge outflow is a function of subsidiary autonomy, corporate socialization, the existence of electronic-based transmission channels, and interpersonal communication; whereas knowledge inflow is influenced by subsidiary autonomy, electronic-based transmission channels, and distance. Implications for publishing houses to promote knowledge transfer processes are derived.