Decision‐making autonomy in multinational corporation subsidiaries operating in Scotland

Abstract

The increasing globalisation of markets has generated new debates about the decision‐making role of MNC subsidiaries. Globalisation may be expected to result in greater centralisation of the decision‐making process. This study analyses the extent to which subsidiaries are being given control over a range of decisions. A sample of MNC subsidiaries operating in Scotland was sent questionnaires which dealt with financial, production, employment and research and development decision making. It was found that considerable authority was devolved to subsidiaries in terms of operational decisions. However, strategic decision making remained very much under the control of the parent. This indicates that the control systems being imposed on subsidiaries are selective and that the benefits created for local economies may be not be as great as it initially appears.

Citation

Bowman, S., Duncan, J. and Weir, C. (2000), "Decision‐making autonomy in multinational corporation subsidiaries operating in Scotland", European Business Review, Vol. 12 No. 3, pp. 129-136. https://doi.org/10.1108/09555340010327781