Title: Parent-subsidiary relationships in transnational companies: aspects of technical development and organization

Authors: Edvard Fleetwood, Bengt Molleryd

Addresses: Royal Swedish Academy of Engineering Sciences (IVA), PO Box 5073, S-102 42 Stockholm, Sweden. ' Royal Swedish Academy of Engineering Sciences (IVA), PO Box 5073, S-102 42 Stockholm, Sweden

Abstract: Most large international industrial companies consist of a two- or three-dimensional matrix organization (product division, region/national, functional). An overriding issue is which part of the organization should have the principal responsibility for technical development. This may be influenced by such factors as the size and character of the business, the location of production units, distribution channels, technology, traditions and previous organization, the size of the home market, etc. This paper discusses the organization of technical development in some European companies. Measures for coordination, communication and cultivation are found to be of great importance.

Keywords: industrial organization; organisational structure; parent-subsidiary relationships; technology management; transnational companies; Europe.

DOI: 10.1504/IJTM.1992.025711

International Journal of Technology Management, 1992 Vol.7 No.1/2/3, pp.97 - 110

Available online: 24 May 2009 *

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