- Title
- The decision-making processes in multinational enterprises: how headquarters make strategic change for their Chinese subsidiaries
- Creator
- McGovern, Jason; Nicholas, Stephen; Boyle, Brendan
- Relation
- Research on the Impact of Global Economic Integration and Information Networking on Sustainable Corporate Development p. 175-185
- Publisher
- Nanjing University Press
- Resource Type
- book chapter
- Date
- 2014
- Description
- While multinational enterprises (MNEs) engage in various types of strategic change, we have a poor understanding of the processes underpinning their decision-making. Using case studies of 9 China-based subsidiaries of MNEs, this paper explores how headquarters (HQ) top management driven subsidiary strategic change decisions in MNEs are made. We identified three decision-making stages for HQ initiated subsidiary strategic changes. In each stage of the decision-making process, HQ management teams' cognitive limitations constrained the effectiveness of decision-making. While headquarters relied on decision-making routines to identify problems and opportunities and to develop, review and sign-off on subsidiary strategic changes, these routines failed to adequately solicit and incorporate the knowledge, information and experience of subsidiary executives. One lesson is for HQ managers to incorporate subsidiary executives more effectively in the strategic change decision-making process for subsidiary level strategic changes.
- Subject
- multinational enterprise; decision-making
- Identifier
- http://hdl.handle.net/1959.13/1298524
- Identifier
- uon:19682
- Identifier
- ISBN:9787305132148
- Language
- eng
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