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Journal cover: European Business Review

European Business Review

ISSN: 0955-534X

Online from: 1989

Subject Area: International Business

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Decision-making autonomy in multinational corporation subsidiaries operating in Scotland

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Title:Decision-making autonomy in multinational corporation subsidiaries operating in Scotland
Author(s):Sally Bowman, (Researcher, Aberdeen Business School, Aberdeen, UK.), James Duncan, (Senior Lecturer in European studies, Aberdeen Business School, Aberdeen, UK.), Charlie Weir, (Reader in Economics, Aberdeen Business School, Aberdeen, UK.)
Citation:Sally Bowman, James Duncan, Charlie Weir, (2000) "Decision-making autonomy in multinational corporation subsidiaries operating in Scotland", European Business Review, Vol. 12 Iss: 3, pp.129 - 136
Keywords:Decision making, Multinationals, Subsidiaries
Article type:Research paper
DOI:10.1108/09555340010327781 (Permanent URL)
Publisher:MCB UP Ltd
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.

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