The impact of decision-making autonomy on subsidiary performance in hypo-groups: cross-insights from socio-emotional selectivity and decision-making dynamics

Abstract

This study analyzes the determinants of decision-making autonomy granted to subsidiaries of hypo-groups by applying socio-emotional selectivity theory to examine how managers structure their preferences and trade-offs within a perceived time horizon. The survey is based on a sample of 246 managers from Moroccan subsidiaries, who were interviewed using a 5-point Likert scale questionnaire. The data were analyzed using multiple regression, which allowed for the simultaneous assessment of the impact of socio-emotional dimensions on decision-making autonomy. The results show that socio-emotional orientation and perceived time horizon significantly influence the decision-making discretion granted. They also indicate that these individual factors interact with subsidiary characteristics to shape governance practices. The study provides a theoretical contribution by emphasizing that decision-making autonomy is not solely a result of organizational parameters but also of the socio-emotional motivations of managers. It also offers an empirical contribution by validating these effects through statistical analyses, as well as a methodological contribution by using a standardized and replicable measurement framework. Overall, it renews the understanding of hypo-group governance by demonstrating that decision-making autonomy results from the interplay between relational factors and socio-emotional preferences within a time horizon perceived by the managers of hypo-group subsidiaries.

Classification JEL : G18, G17, G28, G38

Paper type : Empirical Research