ONLINE - Biases of Senior Managers in the Allocation of Financial Resources to Entrepreneurial Initiatives in Multinational Corporations

23.09.2020 12:00 – 13:00


The allocation of financial resources to entrepreneurial initiatives in subsidiaries of multinational corporations is crucial to their realization. However, such allocation does not always follow rational decision-making and corporations potentially forego important opportunities while financing unpromising ones. We investigate biases of senior headquarters managers in the allocation of financial resources to subsidiary initiatives. We test our hypotheses on 1308 investment decisions made by 109 senior managers from 35 countries during an experimental vignette study. Our results suggest that psychic distance to a subsidiary’s country is negatively related to resource allocation, but only when proposals were submitted by subsidiary managers who appeared to be expatriates. We also find that these managers received more resources than local managers when proposals stem from countries with low psychic distance to headquarters. We extend our understanding of resource allocation and entrepreneurial initiatives in subsidiaries of multinational corporations.



Organisé par

Faculté d'économie et de management
Institute of Management


Phillip C. NELL, WU Vienna University of Economics and Business, Austria

entrée libre


Catégorie: Séminaire

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