The determinants of roles and responsibilities of boards of directors in subsidiary companies

Table of Contents

1 Introduction

1.1 Problem Definition

1.2 Research Questions

1.3 Empirical Context

1.4 Contributions

1.5 Outline

2 Theoretical Framework

2.1 Board of Directors

2.1.1 Board Size

2.1.2 Board Composition and Structure

2.1.3 Board Roles and Responsibilities

2.2 Subsidiary Boards

2.2.1 Subsidiary Board Roles

2.2.2 Subsidiary Board Responsibilities

2.3 Determinants of board responsibilities

2.3.1 Industry Level Factors

2.3.2 Firm Level Factors

2.4 Research Questions and Conceptual Framework

3 Methods

3.1 Research Method: Case Study

3.2 Research Context

3.3 Research Design

3.3.1 Data Analysis

3.3.2 Data Collection

3.3.3 Triangulation of results

3.4 Validity and reliability of the study

3.4.1 Validity

3.4.2 Reliability

4 Findings

4.1 Board Roles and Responsibilities

4.1.1 Internal Role

4.1.2 External Role

4.1.3 Monitoring Role

4.1.4 Advising Role

4.2 Determinants of Board Roles and Responsibilities

4.2.1 Firm Size & Complexity

4.2.2 Acquisitions

4.2.3 Parent Organization

4.2.4 Economical Uncertainty

4.2.5 Industry Changes

4.2.6 Technology & Innovation

4.3 Summary of Research Results

4.4 Correlation with Theory

4.4.1 Firm level Characteristics

4.4.2 Environmental Uncertainty

5 Conclusion & Discussion

5.1 Contributions

5.2 Limitations

5.3 Future Research

Research Objectives and Thematic Focus

This thesis investigates the roles and responsibilities of boards of directors in subsidiary companies and examines how various internal (firm-related) and external (environmental-related) drivers influence these roles. The study specifically addresses the gap in existing corporate governance literature, which has traditionally focused on stand-alone firms rather than the governance dynamics of subsidiary units.

• Identification of core roles for subsidiary boards (Internal, External, Monitoring, Advising).
• Analysis of firm-level drivers such as company growth, acquisitions, and parent organization influence.
• Examination of external environmental drivers including economic uncertainty, industry changes, and technological innovation.
• Application of Agency Theory and Resource Dependence Theory in the context of subsidiary governance.
• Case study research on Lightspeed Research (LSR) to provide empirical evidence and test research propositions.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides the problem definition, research questions, and the empirical context of the study, highlighting the need for research on subsidiary boards.

2 Theoretical Framework: Reviews relevant literature on corporate boards, defines the role of subsidiary boards, and discusses internal and external determinants of board responsibilities.

3 Methods: Details the case study research approach, including data collection via semi-structured interviews at Lightspeed Research and the process of data triangulation.

4 Findings: Presents the empirical results regarding the four board roles and discusses how firm-specific and environmental factors influence these responsibilities.

5 Conclusion & Discussion: Summarizes the study's contributions to governance literature, acknowledges research limitations, and proposes directions for future academic exploration.

Keywords

Corporate Governance, Subsidiary Boards, Board Responsibilities, Internal Role, External Role, Monitoring Role, Advising Role, Agency Theory, Resource Dependence Theory, Subsidiary Management, Firm Size, Environmental Uncertainty, Strategic Planning, Lightspeed Research, Case Study.

Frequently Asked Questions

What is the primary focus of this research?

This thesis examines the roles and responsibilities of boards of directors within subsidiary companies and identifies the internal and external drivers that shape these functions.

What are the central thematic fields?

The research bridges corporate governance, strategic management, and subsidiary-level operations, focusing on the dichotomy of monitoring and advising functions in complex multinational organizations.

What is the primary research question?

The central question is: How do firm- and industry-related characteristics influence the roles and responsibilities of boards of directors in subsidiary companies?

Which scientific method is utilized?

The author uses a qualitative inductive approach, specifically a single-case study of Lightspeed Research, utilizing 8 in-depth interviews and secondary documentation.

What topics are covered in the main body?

The main body covers the conceptualization of internal, external, monitoring, and advising roles, and analyzes drivers such as firm size, acquisitions, parent-subsidiary relationships, economic downturns, and industry technology trends.

Which keywords characterize this work?

Key terms include Subsidiary Boards, Corporate Governance, Agency Theory, Resource Dependence Theory, and Board Responsibilities.

How does a subsidiary's growth impact its board's focus?

The research finds that as a subsidiary grows and becomes more complex, the board's focus shifts from internal operational monitoring to more external and advising-oriented roles.

What role does economic uncertainty play for the board?

In times of economic recession, the study demonstrates that subsidiary boards intensify their focus on the monitoring role, specifically regarding financial ratios and budgetary controls.

What is the "Parent Relationship" in this context?

This refers to the board's role in navigating the politics of the parent organization and sister companies, aligning the subsidiary’s goals with the broader group strategy.