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