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The role of foreign subsidiaries in strategic decision‐making in swedish multinational corporations

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  • Gunnar Hedlund

Abstract

The paper describes how six large Swedish multinational corporations manage the task of assuring strategic integration between headquarters and foreign subsidiaries. Swedish companies are shown to address the problem in an informal way and by leaving their foreign subsidiaries a great deal of autonomy. However, in many instances the necessary integration is not assured. Cases of strategic conflict between parts of companies are analysed, characteristics of and trends in the environment of multinational corporations are identified, and theoretical considerations are applied. With this discussion as a basis, some suggestions are advanced about how to involve subsidiaries more in strategic decision making.

Suggested Citation

  • Gunnar Hedlund, 1980. "The role of foreign subsidiaries in strategic decision‐making in swedish multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 1(1), pages 23-36, January.
    • Handle: RePEc:bla:stratm:v:1:y:1980:i:1:p:23-36
    DOI: 10.1002/smj.4250010104
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    Cited by:

    1. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 0. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-22.
    2. Jacqueline Mees-Buss & Catherine Welch & D. Eleanor Westney, 2019. "What happened to the transnational? The emergence of the neo-global corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1513-1543, December.
    3. Gilbert Kofi Adarkwah & Tine Petersen Malonæs, 2022. "Firm-specific advantages: a comprehensive review with a focus on emerging markets," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 539-585, June.
    4. M Perry & Tan Boon Hui, 1998. "Global Manufacturing and Local Linkage in Singapore," Environment and Planning A, , vol. 30(9), pages 1603-1624, September.
    5. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 2020. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1391-1412, December.
    6. Busi Radebe & John M. Luiz, 2012. "The Strategic Location of Regional Headquarters for Multinationals in Africa," Working Papers 276, Economic Research Southern Africa.

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