Artikel
Dealing with headquarters in the multinational corporation: A subsidiary perspective on organizing costs
This study examines how subsidiaries in multinational corporations (MNCs) experience interactions with corporate headquarters. We conceptualize such interactions in terms of organizing costs, focusing on two key types of costs: bargaining costs and information costs. Specifically, we examine how distance, coordination mechanisms, and atmosphere influence the level of organizing costs in the headquarter-subsidiary relationship. Using survey data collected among 104 subsidiary managers in two MNCs, we show that relationship atmosphere significantly reduces both types of organizing costs, whereas distance increases bargaining costs. We also find that centralization and formalization reduce information costs, whereas social integration, contrary to our hypothesis, increases bargaining costs.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Organization Design ; ISSN: 2245-408X ; Volume: 8 ; Year: 2019 ; Issue: 12 ; Pages: 1-24 ; Cham: Springer
- Classification
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Management
- Subject
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Headquarter-subsidiary relations
Organizing costs
Coordination
Distance
Atmosphere
- Event
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Geistige Schöpfung
- (who)
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Lunnan, Randi
Tomassen, Sverre
Andersson, Ulf
Benito, Gabriel R. G.
- Event
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Veröffentlichung
- (who)
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Springer
- (where)
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Cham
- (when)
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2019
- DOI
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doi:10.1186/s41469-019-0052-y
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Lunnan, Randi
- Tomassen, Sverre
- Andersson, Ulf
- Benito, Gabriel R. G.
- Springer
Time of origin
- 2019
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