Introduction

Abstract

This research is concerned with the relationship between headquarters (HQ) and subsidiaries in multinational corporations (MNCs). This will always be an important theme because the HQ-subsidiary connection is the primary conduit through which HQ is able to manage the corporation. The relationship enables the transfer of the MNC’s ownership advantage and the design and implementation of more efficacious and suitable corporate and subsidiary structures, control mechanisms, and knowledge and innovation coordination systems. All of these facilitate inter-unit product, personnel, factor and knowledge flows of every kind.