IDEAS home Printed from https://ideas.repec.org/p/wyi/wpaper/002443.html
   My bibliography  Save this paper

Influence of multinational companies’ organizational structure on parent company performance: based on empirical data of listed companies in China

Author

Listed:
  • ZHANG Geng
  • ZHANG Yingqin

Abstract

It is a great interest of scholars and corporate managers that how to establish overseas subsidiaries and adopt an optimal organizational structure when a multinational company is in the process of internationalization. As a representative emerging market country, Chinese multinational corporations have their own specific characteristics in the management of overseas subsidiaries. This paper analyzes the impact of the international organization structure of Chinese multinational corporations on business performance. It defines the international organization structure of multinational corporations, analyzes the characteristics of different international organization structures. And it selects the data of the top 200 listed companies in China ranked by overseas income for empirical analysis. It is found that if the organizational structure of Chinese multinational corporations is more centralized, the performance of parent company's business performance will be better. And the accumulation of parent company's international experience will promote the impact of “centralized” organizational structure on performance. In the further research, it is found that technology-oriented internationalization and government holding are main reasons for the differences in the performance between Chinese multinationals and developed countries’ multinationals. So, Chinese enterprises could consider adopting a “centralized” organizational structure to managing overseas subsidiaries and continuously enrich their international experience for management.

Suggested Citation

  • ZHANG Geng & ZHANG Yingqin, 2019. "Influence of multinational companies’ organizational structure on parent company performance: based on empirical data of listed companies in China," Working Papers 2019-07-06, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
  • Handle: RePEc:wyi:wpaper:002443
    as

    Download full text from publisher

    File URL: https://econpub.xmu.edu.cn/research/repec/upload/201907061642414011.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Organizational structure; Overseas subsidiaries; Operating performance; International experience.;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wyi:wpaper:002443. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: WISE Technical Team (email available below). General contact details of provider: https://www.wise.xmu.edu.cn/english/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.