ABSTRACT
The hypermodern multinational corporation (MNC) is meant to convey the suspicion that some crucial aspects of developments of and in MNCs cannot be grasped by notions in the merely 'modern' schools of thought. The heterarchical MNC covers a particular brand of geocentric company, which differs significantly from a version that is likely to develop more rapidly in immediate future. Ethnocentric, companies are managed by home country people, and with time there is a lot of rotations between headquarter (HQ) and subsidiaries. The control style will vary in accordance with practice in the parent company and parent country. This chapter examines 'hierarchy' as one governance mode in geocentric firms. The heterarchical MNC differs from standard geocentric one both in terms of strategy and in terms of structure. Strategically, the main dividing line is between exploiting competitive advantages derived from a home country base on the one hand, and actively seeking advantages originating in the global spread of the firm on other.
