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In our work we saw that during the last decades the environment that the MNCsoperate in has changed becoming more volatile and less pacedly growing. In thisenvironment the MNCs themselves have become more complex and also flexible. Wefound that MNCs are essentially three dimensional, that is, they organizearound product, functional and geographical dimensions and exhibitcharacteristics that having a common origin can be applied along any onedimension. Therefore we depicted MNCs as having a divergent, partiallyoverlapping structural map. On that map there can, for instance, befunctionally oriented Centers Of Excellence, product dimension World ProductMandates, and for capturing synergy of a big set of operations countrydimension based arrangements. Analyzing the development of organizationalaspects of MNC theories we saw different bodies of work pointing to a similardirection. We followed developments of concepts Heterarchy, Transnational (andthe related Individualized Corporation), works of interorganizational theoriesschool (the multicentered MNC), works considering autonomous strategicdecisions, and works originating from subsidiary (host) country research. Inaddition to the structural developments mentioned earlier these works alsopoint to a need to empower the frontline units. Outlining our research problemthe conceptualization of MNCs as operating (competitive) internal markets wasshown to rely on entrepreneurial, initiative taking behavior and result in thedevelopment of the subsidiary. We classified the subsidiaries first selectingoperations substantial enough and then differentiating them based on theautonomy level, as it has implications for the types of initiatives taken.

General Managers Role in Balancing Subsidiary Between Internal Competition and Knowledge Sharing