Consequences of Control and Monitoring: Are they Always Perceived as Negative Attention?

This study examines the consequences experienced by subsidiaries when they are faced with control and monitoring by the headquarter. Previous research has equated control and monitoring with negative attention, as they are generally perceived to be value subtracting (or negative attention) by the subsidiaries. In line with previous studies, our findings show that subsidiaries experience value subtraction in the form of hampered performance, increased administrative work, and delayed decision-making. However, we also find that subsidiaries can perceive control and monitoring to be value adding. This study contributes to the literature by suggesting that control and monitoring can be perceived as either negative or positive attention, depending on the structural position or weight of the subsidiaries. Namely, the subsidiaries with a central structural position in the organization tend to perceive control and monitoring as value adding, whereas peripheral subsidiaries view it as value subtracting.