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A Subsidiary Perspective on Organizing-Costs in Multinational Corporations: The Roles of Distance, Coordination, and Relationship Atmosphere
BI Norwegian Business School, Norway.
BI Norwegian Business School, Norway.
Mälardalens högskola, Akademin för ekonomi, samhälle och teknik, Industriell ekonomi och organisation. (IEO)ORCID-id: 0000-0003-4425-9367
BI Norwegian Business School, Norway.
2016 (Engelska)Konferensbidrag, Publicerat paper (Refereegranskat)
Abstract [en]

Previous studies of organizing-costs in multinational corporations have taken the view of the parent corporation. In this study, we turn the table around and examine how subsidiaries experience organizing-costs as they deal with demands from and interactions with corporate headquarters. Specifically, we examine how distance, coordination mechanisms, and atmosphere influence the level of organizing-costs in the headquarter-subsidiary relationship. We focus on two types of organizing-costs; bargaining costs and information costs. Using survey data collected among subsidiary managers in two Norwegian companies in the consulting and certification services industry, we show that business atmosphere significantly reduces both types of organizing-costs, whereas distance increases bargaining costs. Organizing-costs are also influenced by the coordination mechanisms used in the headquartersubsidiary relationship. We find that centralization and formalization reduce information costs, whereas social integration, contrary to our hypothesis, increases bargaining costs.

Ort, förlag, år, upplaga, sidor
2016.
Nyckelord [en]
Headquarter-subsidiary relations, organizing-costs, coordination, distance, atmosphere
Nationell ämneskategori
Företagsekonomi
Identifikatorer
URN: urn:nbn:se:mdh:diva-34268OAI: oai:DiVA.org:mdh-34268DiVA, id: diva2:1057298
Konferens
AIB 2016 Annual Meeting New Orleans, USA, June 27-30, 2016
Tillgänglig från: 2016-12-16 Skapad: 2016-12-16 Senast uppdaterad: 2016-12-21

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Andersson, Ulf
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