Relationship between the Headquarters and Subsidiaries in Multinational Companies

Abstract

The integration of the activities carried out by the different international units of the multinational corporation is a key strategic requirement, one arising from the increasing globalization of most industries (Doz, 1996; Andrews, 2001; Paterson and Brock, 2002; Harzing, 2000; Bartlett and Ghoshal, 1988, 1989). Managers of multinationals are expected to coordinate their subsidiaries so as to integrate them into a proper strategy to create unique resources to compete against rival companies.