Centralization in Headquarters–Subsidiary Relationships
Stephen R Gates and
William G Egelhoff
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Stephen R Gates: New York University
William G Egelhoff: New York University
Journal of International Business Studies, 1986, vol. 17, issue 2, 71-92
Research to date on centralization in MNCs has produced many inconsistent findings. The present study attempts to add clarity to the situation by re-testing many of the existing hypotheses with data from a recent study of centralization in 50 large US, UK and European MNCs. It examines how the degree of centralization inherent in the head quarters-foreign subsidiary relationship varies in response to a variety of company-wide and subsidiary level conditions. The influence of company-wide conditions on centralization appears to be much clearer than the influence of subsidiary-level conditions. The study also identifies several new contingency patterns that appear to be at work in MNCs today.© 1986 JIBS. Journal of International Business Studies (1986) 17, 71–92
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