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Pursuing headquarters’ attention: Foreign subsidiaries’ strategic issue selling
FGV EAESP Sao Paulo School of Business Administration, Rua São João, 26, Ap 55, SP, Guarulhos, 07094090, Brazil.
FGV EAESP Sao Paulo School of Business Administration, Av. Nove de Julho, 2029, Bela Vista, SP, Sao Paulo, 01313-902, Brazil.
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation. BI Norwegian Business School, Dept. of Strategy and Entrepreneurship, Norway.ORCID iD: 0000-0003-2253-5666
2025 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 34, no 3, article id 102396Article in journal (Refereed) Published
Abstract [en]

Foreign subsidiaries seek to gain attention from headquarters, often through strategic issue selling. It is therefore paramount to understand how the packaging of the issue and the process of issue selling affect headquarters’ attention. Cultural distance can influence the effectiveness of issue selling tactics. A study of 342 foreign subsidiaries reveals that when cultural distance is high, emphasizing corporate benefits becomes less effective, possibly due to headquarters' mistrust or misunderstanding. Interestingly, consistency with headquarters' practices matters less in culturally distant cases, offering opportunities for subsidiaries to propose more novel ideas. Joining efforts with other subsidiaries seems to pay off in low cultural distance situations but can backfire when distance is high, as headquarters may fear insurrection. Cultivating social relations with headquarters' executives is crucial for capturing attention, especially in high cultural distance scenarios, as they help bridge trust and compensate for communication gaps. Our sample, obtained from an online survey, contains 342 cases that comprise a broad coverage of 46 different subsidiaries’ countries and 26 different headquarters’ countries. 

Place, publisher, year, edition, pages
Elsevier BV , 2025. Vol. 34, no 3, article id 102396
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Business Administration
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URN: urn:nbn:se:mdh:diva-70058DOI: 10.1016/j.ibusrev.2025.102396ISI: 001443420700001Scopus ID: 2-s2.0-85215963624OAI: oai:DiVA.org:mdh-70058DiVA, id: diva2:1935237
Available from: 2025-02-06 Created: 2025-02-06 Last updated: 2025-12-03Bibliographically approved

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Andersson, Ulf R.

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