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Costs and Performance Implications from HQs Intervention in Subsidiaries’ Affairs
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0003-4425-9367
BI Norwegian Business School, Norway.
BI Norwegian Business School, Norway.
2014 (English)In: Strategies in a World of Networks, 2014Conference paper, Published paper (Refereed)
Abstract [en]

This paper focuses on HQ intervention and the costs associated with it. Extant literature specifies HQ interventions inareas such as organizing lateral knowledge transfers, strategic planning,support functions, transfer of knowledge to subsidiaries, control mechanisms as means to reduce incentive problems. We link MNC organization with the magnitude of HQ intervention in subunits’ affairs, and examine types of costs such meddling gives rise to. This gives us the possibility ofteasing out how increased costs of specific intrusions will affect the netvalue of HQ action. HQ intervention effects the motivation of subunits and influences the different types of costs. We argue that the scope and type of intervention as well as subsidiary characteristics affect the severity of cost increases, ultimately influencing MNC performance.

Place, publisher, year, edition, pages
2014.
National Category
Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-26626OAI: oai:DiVA.org:mdh-26626DiVA: diva2:766201
Conference
SMS 34th Annual International Conference, Strategic Management Society, September 20-23, 2014 Madrid, Spain
Available from: 2014-11-26 Created: 2014-11-26 Last updated: 2014-12-30Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
  • html
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  • asciidoc
  • rtf