The Role of Corporate Controls, Size, and Corporate Headquarters in the Effect of Corporate-Level Strategy on Business-Level Strategy and Business-Level Performance

The aim of this thesis is to re-examine the relationship between corporate strategy and business unit strategy. Past research has often failed to deconstruct the notion of corporate effects to properly assess the role of corporate strategy in the behaviour and performance of business units. As a result, conflicting findings have led to researchers disagreeing on the significance of corporate effects and corporate strategy. Through this thesis, I have taken steps to clarify the misunderstood significance of corporate strategy to business-unit-level strategy and performance. This dissertation has drawn on the literature from agency theory, information processing theory, and upper echelons theory, as well as the economic logic that underlies value creation in corporations. Through this dissertation, I deconstruct the notion of corporate effects to theoretically redefine the role of controls as the mediator between corporate strategy and business unit strategy to respond to the research question, “How does corporate strategy influence business unit performance?” In addition, I deconstruct business unit effects to examine the impact of business strategy on business unit performance. Finally, I consider business unit strategy to be an exogenous factor. To explore the effect of corporate strategy on business-unit-level strategy and performance, I conducted a quantitative analysis of data corresponding to over 2,500 business units from 193 corporations. Building on a proprietary dataset made accessible for this research, I tested the theoretical model for this thesis using previously collected data from each of the studied business units and the corporate headquarters of their corporate parents. The dataset comprises objective measures of business unit financial performance, objective characteristics of corporate headquarters and structure, and more subjective and behavioural data based on surveys that focus on control mechanisms to which business units are subject and the strategic orientation they pursue. The quantitative analysis was undertaken after performing steps for validation of the measures used and in compliance with measures and techniques used in past research. I find support in my analysis for a partial mediating role of controls in the relationship between corporate strategy and business-unit-level strategy. The results from the analysis demonstrate that the strategic orientations of business units are endogenous to the corporate strategy through the mechanism of controls to which each business unit is subject. I also find support for the moderating effect of certain factors at the corporate level, such as size of corporate headquarters, number of business units managed by the corporation, and the corporate CEO’s background in the relationship between corporate strategy and controls. The findings of this thesis re-establish the role of corporate strategy in our understanding of business-unit-level strategy and performance. Contrary to past research, I have theorized business-unit-level strategy to be endogenous to corporate strategy. I have also developed the controls construct and have measured it for each business unit studied in order to test my theoretical model. My findings in this thesis take a step towards enhancing our understanding of how corporate strategy influences strategy and performance at the business unit level. To explore the effect of Corporate Strategy on Subsidiary level strategy and performance, I have conducted a quantitative analysis of data corresponding to over 2500 subsidiaries from 193 corporations. Building on a proprietary dataset made accessible for this research, I tested the theoretical model for this thesis using previously collected data from each of the studied subsidiaries and the corporate headquarters of their corporate parents. The dataset comprises of objective measures of subsidiary and corporate financial performance, objective characteristics of corporate headquarters characteristics and structure, as well as more subjective and behavioural data based on surveys which focus on control mechanisms to which subsidiaries are subject and the strategic orientation they pursue. The quantitative analysis was undertaken after performing steps for validation of the measures used and in compliance with measures and techniques used in past research. I find support in my analysis for the mediating role of Controls in the relationship between Corporate Strategy and subsidiary level strategy. The results from the analysis demonstrate that the strategic orientations of subsidiaries are endogenous to the corporate strategy through the mechanism of Controls each subsidiary is subject to. I also find support for the moderating effect of certain aspects and characteristics at corporate level such as size of corporate headquarters, number of subsidiaries managed by the corporation, and corporate CEO’s background in the relationship between Corporate Strategy and Controls. The findings of this thesis re-establish the role of Corporate Strategy in our understanding of subsidiary level strategy and performance. Contrary to past research, I have theorized subsidiary level strategy to be endogenous to corporate strategy. I have also developed the Controls construct and have measured it for each subsidiary studied in order to test my theoretical model. My findings in this thesis take a step towards enhancing our understanding of how Corporate Strategy influences strategy and performance at corporate and subsidiary levels

Automated Stability Analysis of Piecewise Affine Dynamics Using Vertices

This paper presents an automated algorithm to analyze the stability of piecewise affine (PWA) dynamical systems due to their broad applications. We parametrize the Lyapunov function as a PWA function, with polytopic regions defined by the PWA dynamics. Using this parametrization, Stability conditions can be expressed as linear constraints restricted to polytopes so that the search for a Lyapunov function involves solving a linear program. However, a valid Lyapunov function might not be found given these polytopic regions. A natural response is to increase the size of the parametrization of the Lyapunov function by dividing regions and solving the new linear program. This paper proposes two new methods to divide each polytope into smaller ones. The first approach divides a polytope based on the sign of the derivative of the candidate Lyapunov function, while the second divides it based on the change in the vector field of the PWA dynamical system. In addition, we propose using Delaunay triangulation to achieve automated division of regions and preserve the continuity of the PWA Lyapunov function. Examples involving learned models and explicit MPC controllers demonstrate that the proposed method of dividing regions leads to valid Lyapunov functions with fewer regions than existing methods, reducing the computational time taken for stability analysisComment: 11 pages, 11 figure

Toward an artificial Mott insulator: Correlations in confined, high-density electron liquids in SrTiO3

We investigate correlation physics in high-density, two-dimensional electron liquids that reside in narrow SrTiO3 quantum wells. The quantum wells are remotely doped via an interfacial polar discontinuity and the three-dimensional (3D) carrier density is modulated by changing the width of the quantum well. It is shown that even at 3D densities well below one electron per site, short-range Coulomb interactions become apparent in transport, and an insulating state emerges at a critical density. We also discuss the role of disorder in the insulating state.Comment: Accepted for publication in Physical Review B (Rapid Communication

Structure and Dynamics of the Instantaneous Water/Vapor Interface Revisited by Path-Integral and Ab-Initio Molecular Dynamics Simulations

The structure and dynamics of the water/vapor interface is revisited by means of path-integral and second-generation Car-Parrinello ab-initio molecular dynamics simulations in conjunction with an instantaneous surface definition [A. P. Willard and D. Chandler, J. Phys. Chem. B 114, 1954 (2010)]. In agreement with previous studies, we find that one of the OH bonds of the water molecules in the topmost layer is pointing out of the water into the vapor phase, while the orientation of the underlying layer is reversed. Therebetween, an additional water layer is detected, where the molecules are aligned parallel to the instantaneous water surface.Comment: 9 pages, 5 figure