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Effective strategy-making in multinational subsidiaries
Type
conference paper
Date Issued
2015
Author(s)
Abstract
We outline commonalities between studies of subsidiary decentralization and autonomous strategy-making in the international business and strategic management fields. This suggests that corporate headquarters should engage in strategy-making processes that provide a combination of formal direction for global efficiencies and autonomy for effective local responses. Strategic guidance from headquarters frames subsidiary decisions in line with corporate priorities and distributed decision power coupled with informal exchange of information facilitates strategic responses in tune with local market requirements. We identify some important nuances in the integration-responsiveness conundrum supported by an empirical study of 351 multinational subsidiaries. We discuss the implications for multinational strategy practice and suggest future research venues to investigate strategy-making in multinational firms.
Language
English
Keywords
Central direction
Decentralization
Informal communication
Multinational strategy
Subsidiary autonomy
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Publisher
Strategic Management Society
Event Title
Strategic Management Society (SMS) 35th Annual International Conference
Event Location
Denver, CO
Subject(s)
Division(s)
Eprints ID
256869