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Dealing with headquarters in themultinational corporation: a subsidiaryperspective on organizing costs
Norwegian Business School.
Norwegian Business School.
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation. Norwegian Business School.ORCID iD: 0000-0003-4425-9367
Norwegian Business School.
2019 (English)In: Journal of Organization Design, E-ISSN 2245-408X, Vol. 8, no 12, p. 1-24Article in journal (Refereed) Published
Abstract [en]

This study examines how subsidiaries in multinational corporations (MNCs) experienceinteractions with corporate headquarters. We conceptualize such interactions in termsof organizing costs, focusing on two key types of costs: bargaining costs andinformation costs. Specifically, we examine how distance, coordination mechanisms,and atmosphere influence the level of organizing costs in the headquarter-subsidiaryrelationship. Using survey data collected among 104 subsidiary managers in two MNCs,we show that relationship atmosphere significantly reduces both types of organizingcosts, whereas distance increases bargaining costs. We also find that centralization andformalization reduce information costs, whereas social integration, contrary to ourhypothesis, increases bargaining costs.

Place, publisher, year, edition, pages
2019. Vol. 8, no 12, p. 1-24
Keywords [fr]
Headquarter-subsidiary relations, Organizing costs, Coordination, Distance, Atmosphere
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:mdh:diva-45562DOI: 10.1186/s41469-019-0052-yOAI: oai:DiVA.org:mdh-45562DiVA, id: diva2:1361377
Available from: 2019-10-16 Created: 2019-10-16 Last updated: 2019-10-16Bibliographically approved

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Andersson, Ulf

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  • apa
  • ieee
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  • de-DE
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  • en-US
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  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
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  • asciidoc
  • rtf