ABSTRACT
The global business context is characterized by uncertainty and turbulence affected by technology-driven changes in information-processing and communication capabilities. In this environmental context it becomes important to manage the implied strategic exposures in ways that can exploit emerging opportunities arising from the changing context while building a resilient corporate structure of multinational business operations. This chapter presents a research that considers the direct and indirect effects of subsidiary autonomy where the headquarters may delegate decision-making power voluntarily for strategic reasons with authority obtained from headquarters because there is substantial dependence on unique knowledge and capabilities in the respective subsidiaries. The networked multinational structure can exploit global economic efficiencies while enabling local responses to specific developments in national markets if the overseas subsidiaries operate conjointly under a strategic mandate from headquarters and have broad autonomy enhanced by open communication links across the network.
