Headquarter-subsidiary relationships in multinational corporations

Abstract: The aim of this dissertation is to describe and analyze how headquarter-subsidiary relationships are managed in multinational corporations. More specifically, based on an intensive investigation of six MNCs, this study addresses the following questions: - What systems or instruments does the MNC use to coordinate and control the activities of the foreign subsidiaries? How are these systems designed and managed? - How do the environment and strategy of the MNC, i.e. the environmental and strategic context, influence the need for coordination and control of the foreign subsidiaries and the design and functioning of the various coordination and control systems? - How do the design and functioning of the total configuration of systems influence the mode of managing headquarter-subsidiary relationships and the performance of the MNC? How are various coordination and control systems interrelated within a single MNC?