The Effect of Corporate Strategic Roles on Corporate Parenting Styles

Directing subsidiaries is one of the key tasks of a holding company, and the alignment of this task with overall firm directions, reflected in strategic roles, is crucial. This study aims to investigate the effects of such roles on the types of directing subsidiaries or parenting styles. The present research is a developing study from the viewpoint of results, a descriptive one from the viewpoint of goals, and a quantitative study from the viewpoint of data. To do the research, after the research model was generated and the corresponding hypotheses were extracted, a questionnaire including 30 questions was made to determine the parenting strategic roles and the parenting styles. The validity and the reliability of the questionnaire were confirmed. The statistical population of research included 500 Iranian corporate parents. The sample size was determined by the Cochran’s formula as 81 units. The questionnaires were distributed through simple random sampling. To test the hypotheses, structural equation modeling was done using partial least squares and path coefficients. The results confirmed that parental roles have a significant influence on parenting styles. There were also proofs for the influence of both mentioned variables on corporate parent financial performance.