The influence of corporate headquarters on leadership styles inJapanese and US subsidiary companies

Abstract

Uses a questionnaire survey sent to CEOs of US and Japanese subsidiaries located in North America to assess the amount of influence exerted on such companies by corporate headquarters and the effect of this influence on leadership styles of subsidiary management. US subsidiaries are found to be insignificantly influenced by their parent companies and to practise a professional style of leadership. However, Japanese subsidiaries are found to be significantly influenced by overseas parent companies and to practise a corporate style of leadership (when the CEO is Japan‐educated) and a professional style of leadership (when the CEO is US‐educated). These findings reinforce the perceived link between leadership style and cultural upbringing and education.