A carregar...
Publicação
What's in a name?
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 285.96 KB | Adobe PDF |
Orientador(es)
Resumo(s)
The allocation of financial resources to entrepreneurial initiatives in subsidiaries of multinational corporations is crucial to their realization. When allocating resources to these initiatives, senior headquarters managers face uncertainty that they attempt to address using various heuristics, which may bias allocation. Name-based heuristics – cognitive shortcuts based on names associated with a decision-making situation – have been shown to influence financial decisions ranging from food purchase to stock investment. Yet little is known about name-based heuristics in the allocation of financial resources to entrepreneurial initiatives. We analyse 1308 resource allocation decisions made by 109 senior managers in an experiment in which we vary subsidiary country and subsidiary manager names. We find that psychic distance to the subsidiary country is negatively related to resource allocation when subsidiary managers' names express a potential expatriate status. In contrast, this relationship is positive when subsidiary managers' names express a potential local status. We contextualize our results by interviewing senior managers and discuss how reliance on name-based heuristics to infer the context of an initiative or the interests and competences of subsidiary managers can lead to biased decisions.
Descrição
Funding Information: We thank the Guest Editors and three anonymous reviewers for detailed and constructive comments. We are grateful to Owen Powell for his help with the experiment. This paper greatly benefited from discussions with and comments of Fernando Anjos, Olivier Bertrand, Ben Greiner, Alison E. Holm, and Randi Lunnan. We are thankful to seminar participants at IESE, University of Valencia, and WU Vienna as well as reviewers and participants of the Academy of Management Annual Meeting and of the Academy of International Business Annual Meeting for their valuable inputs. This study received funding from WU Vienna, the Fundação para a Ciência e a Tecnologia (UID/ECO/00124/2019, UIDB/00124/2020 and Social Sciences DataLab, PINFRA/22209/2016), POR Lisboa and POR Norte (Social Sciences DataLab, PINFRA/22209/2016). Publisher Copyright: © 2022 The Authors. Journal of Management Studies published by Society for the Advancement of Management Studies and John Wiley & Sons Ltd.
Palavras-chave
corporate entrepreneurship headquarters-subsidiary relations heuristics in decision-making internal resource allocation psychic distance Business and International Management Strategy and Management Management of Technology and Innovation