How to capture the diversity within contemporary approaches of headquarters-subsidiary relationships? A study of 10 French MNCs

Abstract : In contemporary conceptualizations, headquarters-subsidiary relationships are characterized by both local and global tensions. However, research on headquarters-subsidiary relationships has not tended to focus on how a multinational corporation (MNC) really functions internally. My research aims to understand how the relationships function and to explore the diversity within those relationships. To this end, I have studied 10 MNCs. Seventy interviews have been conducted with top managers based either at the MNC’s headquarters or in its international subsidiaries. My findings indicate that diversity in headquarters-subsidiary relationships can be related to the modulation of various criteria: the degree of autonomy of the subsidiary, modes of coordination and internal diversity/uniformity in headquarters-subsidiary relationships. Determining the different combinations of these criteria (which are influenced by contextual factors) enables a better understanding of the diversity of headquarters-subsidiary relationships and makes it possible to identify a variety of roles played by the headquarters.