Towards an Efficient Level of Centralization in MNEs | Zendy

Francesco Scalera | Zendy; Sylva Žáková Talpová | Zendy

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Towards an Efficient Level of Centralization in MNEs

Author(s) -

Francesco Scalera,

Sylva Žáková Talpová

Publication year - 2013

Publication title -

procedia - social and behavioral sciences

Language(s) - English

Resource type - Journals

ISSN - 1877-0428

DOI - 10.1016/j.sbspro.2013.04.013

Subject(s) - multinational corporation , decentralization , contingency theory , contingency , organizational structure , snow , industrial organization , business , process (computing) , economic geography , economic system , process management , management , economics , market economy , computer science , geography , linguistics , philosophy , finance , meteorology , operating system

The alignment of strategy with organizations structure, process and environment is at the heart of contingency theories. However, transition and dynamically changing environment are challenging the existing models of “strategic fit”. In this paper we explore the issue by applying the seminal model of Miles and Snow (1978) to a panel of 160 multinational enterprises, focusing on the level of centralization/decentralization of various strategic types. We find that the among prospectors, defenders, analyzers and reactors there are almost no differences in the level of centralization of various processes, which is not consistently related to organizational strategies predicted by Miles and Snow. The findings raise the question of evolving organizational structures of MNEs which would be able to respond to the changing environment

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