The Influence of Corporate Parent Strategic Intelligence on Business Performance and Turnaround of Crisis-hit Subsidiaries

Document Type : Research Paper

Authors

1 Assistant professor of Azad University, Investment and development manager in Tappico

2 Technology Expert- University of Tehran

3 Researcher-Business management

Abstract

Abstract: One of the philosophies of corporate parents’ existence is value creation within subsidiaries. In businesses affected by crisis, the mentioned role would emerge in form of supporting turnaround process and helping to get out of crisis quickly. In this article, the goal is to examine corporate parent strategic intelligence on performance of crisis-hit subsidiaries, which have employed one type of various turnaround strategies. The population of the study for crisis-hit companies consists of Iranian companies, which have experienced a decrease in their financial indices during 1370 up to 1390 for at least 2 successive ages. For corporate parents, the major stockholders of businesses with the highest number of board members are considered as statistical population. For statistical analysis, structural equation modeling and path coefficient are employed. The results of main hypothesis revealed that parent strategic intelligence generally has a significant influence on subsidiaries’ relief of crisis and. Furthermore, the results of minor hypotheses tests accepted significant influence of parent intelligence on all turnaround strategies excluding operational efficiency strategy.

Keywords

References

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Journal of Entrepreneurship Development
Volume 14, Issue 3 - Serial Number 53
December 2021
Pages 381-400

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