• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site

Working paper

Corporate Parenting Styles in the Global Economy

The paper provides a summary of the existing typologies of corporate parenting styles and  discovers the missing elements in the theoretical constructs. New theoretical constructs fill the  gaps. The paper presents a new typology of corporate parenting style by combining “adding  value to subsidiaries by their corporate parent(s)” and “extracting value from subsidiaries by  their corporate parent(s).” The four-type typology of corporate styles outlines the different levels  of value addition and value extraction and various degree of reciprocity of both processes. This  paper determines the most important factors that affect the selection of corporate parenting  styles. It postulates that the multinational corporation should simultaneously exhibit different  parenting styles towards their subsidiaries and should be ready to swiftly amend their parenting  styles to reflect the changes in a subsidiary’s strategy and its motives for corporate ownership.