1 AIT Asian Institute of Technology

The relationship between headquarters and subsidiaries in a multinational company and its impact on innovation and new product development

AuthorKeller, Claire-Marie
Call NumberAIT RSPR no.SM-14-07
Subject(s)New products--Economic aspects

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration – MBA
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-14-07
AbstractThe ability to come up with innovation is one of the most critical tasks to achieve sustainable growth. I nnovation and new p roduct development have become major challenge s for m ulti national companies, which have to define the level of standardization and adaptation of the ir product s, but also the company organization design. We have studied t he impact of the relationship between headquarter s and subsidiary – organization design, cent ralization/ decentralization of decision - making, knowledge transfer – on innovation and new product development in multinational companies . The research has been based on three case studies, in order to obtain qualitative data and gain a deep understanding of the multinational companies’ complex organization and innovation processes. Based on our findings, we introduce a framework to describe the relationships between headquarters and subsidiaries, where the headquarters can have the role of decision - ma k ers, regulators or supporters. T he decision - maker approach l eads to low intensity of cross - site knowledge - sharing, high degree of centralization of knowledge management and decision - making and a hierarchical structure. On the other hand t he partnering approach (headquarters as regulators or supporters) is more likely to allow high - intensity of cross - site knowledge sharing thanks to cross - functional and cross - company teams, autonomy of the subsidiaries and a strategic role of communities of practice.
Year2014
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-14-07
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Yuosre Badir;
Examination Committee(s)Nazrul Islam;Sununta Siengthai;
DegreeResearch report (M. BA.) - Asian Institute of Technology, 2014


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