Procedural Justice, Attitudes and Subsidiary Top Management Compliance with Multinational's Corporate Strategic Decisions

This paper builds on the findings (Kim and Mauborgne 1991), concerning the positive effect of the exercise of procedural justice in strategic decision-making at head office on subsidiary managers' commitment, trust and outcome satisfaction. Theoretical arguments are here developed to trace the effect of procedural justice on the behaviour of compliance. The results here, based on two-staged longitudinal data, suggest that procedural justice was, however, found to be more powerful in inducing compliance when it was applied to subsidiary units operating in global as opposed to multidomestic industries.