Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Decision‐making autonomy in multinational corporation subsidiaries operating in Scotland

Decision‐making autonomy in multinational corporation subsidiaries operating in Scotland The increasing globalisation of markets has generated new debates about the decision‐making role of MNC subsidiaries. Globalisation may be expected to result in greater centralisation of the decision‐making process. This study analyses the extent to which subsidiaries are being given control over a range of decisions. A sample of MNC subsidiaries operating in Scotland was sent questionnaires which dealt with financial, production, employment and research and development decision making. It was found that considerable authority was devolved to subsidiaries in terms of operational decisions. However, strategic decision making remained very much under the control of the parent. This indicates that the control systems being imposed on subsidiaries are selective and that the benefits created for local economies may be not be as great as it initially appears. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Business Review Emerald Publishing

Decision‐making autonomy in multinational corporation subsidiaries operating in Scotland

European Business Review , Volume 12 (3): 8 – Jun 1, 2000

Loading next page...
 
/lp/emerald-publishing/decision-making-autonomy-in-multinational-corporation-subsidiaries-eCtZE6CCSI
Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0955-534X
DOI
10.1108/09555340010327781
Publisher site
See Article on Publisher Site

Abstract

The increasing globalisation of markets has generated new debates about the decision‐making role of MNC subsidiaries. Globalisation may be expected to result in greater centralisation of the decision‐making process. This study analyses the extent to which subsidiaries are being given control over a range of decisions. A sample of MNC subsidiaries operating in Scotland was sent questionnaires which dealt with financial, production, employment and research and development decision making. It was found that considerable authority was devolved to subsidiaries in terms of operational decisions. However, strategic decision making remained very much under the control of the parent. This indicates that the control systems being imposed on subsidiaries are selective and that the benefits created for local economies may be not be as great as it initially appears.

Journal

European Business ReviewEmerald Publishing

Published: Jun 1, 2000

Keywords: Decision making; Multinationals; Subsidiaries

References