A New Model of the Headquarters- subsidiary Relationship

  • Stewart Johnston


The several literatures presented in the Chapters 2 and 3 above have not made much progress in extending their analysis to include HQ- subsidiary relations. This is because the picture has become more complex in recent times. As international competition grew, so did proliferation of strategies. The extant research was generally based upon detailed examination of relatively small numbers of firms. For example, few if any large-scale studies in this literature linked strategy with particular industries or product markets in the manner of Porter. The classifications that have emerged were therefore simply descriptive, providing labels for the outcomes of a given context. The hierarchical form and its various local and global subsidiary tasks remained unexplained and the new dimensions introduced by the arrival of the transnational/heterachy have not yet been convincingly assimilated into the previous work.


Knowledge Management Vertical Integration Multinational Corporation Business Level Unrelated Diversification 
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© Stewart Johnston 2005

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  • Stewart Johnston

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