Coordination of Foreign Subsidiaries in Multinational Enterprises (eBook, PDF)
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The approaches of differentiated coordination of foreign subsidiaries hardly get recognized and implemented by multinational enterprises in business practice. This could be due to lack of practicability of the existing coordination approaches. To gain a better acceptance of these approaches in entrepreneurial practice this thesis adapts and enhances the most important coordination approaches in an initial study performed 1993-2000. The findings were back tested with an independent sample in 2004. As a result, the new network approach by Bartlett/Ghoshal (2002) had to be given preference over t...
The approaches of differentiated coordination of foreign subsidiaries hardly get recognized and implemented by multinational enterprises in business practice. This could be due to lack of practicability of the existing coordination approaches. To gain a better acceptance of these approaches in entrepreneurial practice this thesis adapts and enhances the most important coordination approaches in an initial study performed 1993-2000. The findings were back tested with an independent sample in 2004. As a result, the new network approach by Bartlett/Ghoshal (2002) had to be given preference over the extended EPRG scheme by Perlmutter (1965) on a group level. The most advanced and practical approach on the group level was the requisite complexity by Nohria/Ghoshal (1997). The concepts differentiating single subsidiaries showed diverse results. The contingency approaches showed neither for the resource level of subsidiaries nor for the environmental complexity significant results. The more advanced approach internal differentiation by Nohria/Ghoshal (1997) including transaction cost considerations produced practical results and ready-to-use guidelines. However, the model had to be adapted to practical needs. All results were in line with former international research. The findings are summarized in an advanced and comprehensive approach for the coordination of foreign subsidiaries in multinational enterprises.
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