Effective Strategy-Making in Multinational Subsidiaries

Torben Juul Andersen, Ulf Andersson, Maximilian Palmié, Matthias Keupp

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    Abstract

    We outline commonalities between studies of subsidiary decentralization and autonomous strategy-making in the international business and strategic management fields. This suggests that corporate headquarters should engage in strategy-making processes that provide a combination of formal direction for global efficiencies and autonomy for effective local responses. Strategic guidance from headquarters frames subsidiary decisions in line with corporate priorities and distributed decision power coupled with informal exchange of information facilitates strategic responses in tune with local market requirements. We identify some important nuances in the integration-responsiveness conundrum supported by an empirical study of 351 multinational subsidiaries. We discuss the implications for multinational strategy practice and suggest future research venues to investigate strategy-making in multinational firms.
    Original languageEnglish
    Publication date2015
    Number of pages22
    Publication statusPublished - 2015
    EventStrategic Management Society 35th Annual International Conference. SMS 2015 - Denver, United States
    Duration: 3 Oct 20156 Oct 2015
    Conference number: 35
    http://denver.strategicmanagement.net/index.php

    Conference

    ConferenceStrategic Management Society 35th Annual International Conference. SMS 2015
    Number35
    CountryUnited States
    CityDenver
    Period03/10/201506/10/2015
    Internet address

    Cite this

    Andersen, T. J., Andersson, U., Palmié, M., & Keupp, M. (2015). Effective Strategy-Making in Multinational Subsidiaries. Paper presented at Strategic Management Society 35th Annual International Conference. SMS 2015, Denver, United States.