Control and autonomy between headquarters and subsidiaries: a case study of a us multinational in Portugal
DOI:
https://doi.org/10.18568/1980-4865.8320-37Keywords:
Multinational, Subsidiaries, Control, AutonomyAbstract
The management of multinational corporations (MNCs) is complicated by the dispersion of subsidiaries in different locations, and the need to organize the best solutions for control, coordination and independence of each subsidiary to leverage their contribution to the EMN. In this article, based on the case study of a U.S. MNC with a subsidiary in Portugal, we analyze the relationship between autonomy and control headquarters the Portuguese subsidiary. The study identifies the main reasons that determine the amount of control exercised over the subsidiary. We conclude that the centralization, formalization of processes and integration rules are essential to the maintenance of coordination and cooperation between headquarters and subsidiary. However, it is the performance of the subsidiary and its role, particularly as contributory network of subsidiaries, which seems to confine the relations of control-autonomy.
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