1. DIFFERENTIATED FIT AND SHARED VALUES: ALTERNATIVES FOR MANAGING HEADQUARTERS-SUBSIDIARY RELATIONS.
- Author
-
Nohria, Nitin and Ghoshal, Sumantra
- Subjects
INTERNATIONAL business enterprises ,CORPORATE headquarters ,SUBSIDIARY corporations ,ORGANIZATIONAL structure ,FOREIGN subsidiaries ,CORPORATE culture ,BUSINESS conditions ,ORGANIZATIONAL sociology research ,STRATEGIC planning ,MANAGEMENT ,COMMUNICATION in management - Abstract
This paper elaborates and provides empirical support for two different approaches to managing the nexus of headquarters-subsidiary relations in a multinational corporation(MNC). The first approach is that of Differentiated Fit. We show that the extent to which an MNC differentiates the formal structure of its headquarters-subsidiary relations to fit the contexts of its various subsidiaries, the better the performance of the MNC as a whole. The second approach is that of Shared Values. We show that a high degree of shared values among the headquarters and subsidiaries is another approach to governing headquarters-subsidiary relation that enhances the performance of the MNC. We further maintain that differentiated fit and shared values, while being alternatives, are not mutually exclusive ways of effectively managing headquarters-subsidiary relations. Indeed, MNCs that can simultaneously implement these two approaches have the best relative performance. [ABSTRACT FROM AUTHOR]
- Published
- 1994
- Full Text
- View/download PDF