Location of Decision-Rights Within Multinational Firms
Author | : Leslie A. Robinson |
Publisher | : |
Total Pages | : |
Release | : 2013 |
ISBN-10 | : OCLC:1308969108 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Location of Decision-Rights Within Multinational Firms written by Leslie A. Robinson and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using U.S.-based multinational firm data gathered over more than two decades, we examine factors associated with the location of decision-rights within these firms, whether the inappropriate assignment of decision-rights is associated with poor firm performance, and whether these firms relocate decision-rights in response to their evolving environments. We find that a mismatch between the location of decision-rights and a firm's environment is associated with weak firm performance. We also show that the likelihood a parent company will alter the assignment of decision-rights to a subsidiary is increasing in the extent of a mismatch although this likelihood is decreasing in the strength of the subsidiary's performance.