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Centralization in Headquarters–Subsidiary Relationships

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  • Stephen R Gates

    (New York University)

  • William G Egelhoff

    (New York University)

Abstract

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

Suggested Citation

  • Stephen R Gates & William G Egelhoff, 1986. "Centralization in Headquarters–Subsidiary Relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(2), pages 71-92, June.
    • Handle: RePEc:pal:jintbs:v:17:y:1986:i:2:p:71-92
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