Chapter 5. Internal differentiation within multinational corporations
This is one of several papers Sumantra wrote with Nitin Nohria examining different facets of the differentiated network model of the multinational corporation. They argue here that the relationship between the national subsidiary and corporate HQ is systematically differentiated to fit the different environmental and resource contingencies faced by the national subsidiary. Three facets of the HQ–subsidiary relationship are examined – the centralization of decision-making at the centre, the formalization of rules and procedures, and the extent to which there are shared values between the two parties. The analysis supports ...
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