Determinants of autonomy in multinational corporation subsidiaries

James Taggart and Neil Hood

European Management Journal, 1999, vol. 17, issue 2, 226-236

Abstract: This paper reports on a survey of German and Japanese manufacturing affiliates located in the British Isles. One focus of interest is the degree of autonomy possessed by the subsidiary, and linkages between this and a range of strategic variables is explored. A second element of the investigation examines how the level of autonomy may be predicted from a smaller number of significant strategic variables. The paper concludes with a discussion of the implications of high autonomy at subsidiary level and some reflections on ramifications for multinational corporation (MNC) parents and policy makers. High-autonomy subsidiaries are identified as critical for the economic development objectives of policy makers.

Date: 1999
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