Strategy and structure in multinational corporations: A revision of the stopford and wells model

William G. Egelhoff

Strategic Management Journal, 1988, vol. 9, issue 1, 1-14

Abstract: The Stopford and Wells study of strategy and structure in multinational corporations produced a now familiar model relating certain types of structure to certain elements of a firm's international strategy. This paper re‐examines the important relationships expressed by the model, using data from a recent study of 34 large U.S. and European multinationals. While some of the relationships are supported, others are not. A new element of strategy, the relative size of foreign manufacturing, is introduced, and found to be an important predictor of structure. Based on the findings, a revised model for relating strategy and structure in MNCs is proposed.

Date: 1988
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