Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217472 
Year of Publication: 
2019
Citation: 
[Journal:] Journal of Organization Design [ISSN:] 2245-408X [Volume:] 8 [Issue:] 12 [Publisher:] Springer [Place:] Cham [Year:] 2019 [Pages:] 1-24
Publisher: 
Springer, Cham
Abstract: 
This study examines how subsidiaries in multinational corporations (MNCs) experience interactions with corporate headquarters. We conceptualize such interactions in terms of organizing costs, focusing on two key types of costs: bargaining costs and information costs. Specifically, we examine how distance, coordination mechanisms, and atmosphere influence the level of organizing costs in the headquarter-subsidiary relationship. Using survey data collected among 104 subsidiary managers in two MNCs, we show that relationship atmosphere significantly reduces both types of organizing costs, whereas distance increases bargaining costs. We also find that centralization and formalization reduce information costs, whereas social integration, contrary to our hypothesis, increases bargaining costs.
Subjects: 
Headquarter-subsidiary relations
Organizing costs
Coordination
Distance
Atmosphere
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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