Costs and Performance Implications from HQs Intervention in Subsidiaries’ Affairs

• 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.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Industrial Economics and Organisations

industriell ekonomi och organisation

Publikations- och innehållstyp

ref (ämneskategori)

kon (ämneskategori)