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Configuration and Co-ordination of Value Activities in German Multinational Corporations

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  • Holtbrügge, Dirk

Abstract

Multinational Corporations (MNCs) integrate their value activities more and more into a world-wide corporate strategy. This is characterized by a high level of functional specialization and diverse resource interdependencies between their sub-units. To cope with the resulting need for cross-border coordination, personal and horizontal mechanisms are argued to have a higher efficiency than traditional technocratic and vertical instruments. A study of 66 foreign subsidiaries of large German MNCs reveals at least a medium degree of functional specialization. However, hierarchical coordination mechanisms are still dominant. Both the configuration and coordination of MNCs is influenced by several firm-specific, industry-specific and country-specific conditions. Surprisingly, only a weak relation between configuration and coordination of value activities can be observed.

Suggested Citation

  • Holtbrügge, Dirk, 2005. "Configuration and Co-ordination of Value Activities in German Multinational Corporations," European Management Journal, Elsevier, vol. 23(5), pages 564-575, October.
    • Handle: RePEc:eee:eurman:v:23:y:2005:i:5:p:564-575
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    Cited by:

    1. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.

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