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Organization in-Between: The Evolution of the Mother-Daughter Structure of Managing Foreign Subsidiaries in Swedish MNCS

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  • Gunnar Hedlund

    (Stockholm School of Economics)

Abstract

In-depth case studies of 4 times and a questionnaire survey of 52 companies show that the mother-daughter structure prevalent in Swedish MNCs is changing. Firms tends to adopt organizational structures ’in between’ a pure mother-daughter one and one divided along product or technology lines. Rather than introducing formal matrix structure, relatively simple organizational forms are complimented by changes in informational systems, budgeting procedures, rotation of personnel, and so forth. The control style is changing in the direction of slightly more formal performance evaluation. The changes can be understood as adaptation to growing size of the firms, increased product diversity, acquisitions of foreign companies, technological maturity, entry of new managers, and slower demand growth.© 1984 JIBS. Journal of International Business Studies (1984) 15, 109–123

Suggested Citation

  • Gunnar Hedlund, 1984. "Organization in-Between: The Evolution of the Mother-Daughter Structure of Managing Foreign Subsidiaries in Swedish MNCS," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 109-123, June.
    • Handle: RePEc:pal:jintbs:v:15:y:1984:i:2:p:109-123
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    Cited by:

    1. Sven Kunisch & Markus Menz & David Collis, 2020. "Corporate headquarters in the twenty-first century: an organization design perspective," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-32, December.
    2. Alberto Onetti & Hal Steger, 2007. "Formulating an open source business model requires community segmentation and targeted marketing," Economics and Quantitative Methods qf0707, Department of Economics, University of Insubria.
    3. Dalli, Daniele, 1995. "The organization of exporting activities: Relationships between internal and external arrangements," Journal of Business Research, Elsevier, vol. 34(2), pages 107-115, October.
    4. Pahlberg, Cecilia, 1996. "MNCs differ - and so do subsidiaries," Working Papers 1996:6, Uppsala University, Department of Business Studies.
    5. Beyer, Jürgen, 2001. "One best way oder Varietät? Strategischer und organisatorischer Wandel von Großunternehmen im Prozess der Internationalisierung," MPIfG Discussion Paper 01/2, Max Planck Institute for the Study of Societies.

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