Unbundling European operations: Regional management and corporate flexibility in American and Japanese MNCS

Mark Lehrer, Kazuhiro Asakawa

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42 Citations (Scopus)

Abstract

Empirical research on the European operations of 19 American and Japanese multinational companies (MNCs) suggested, first, that the strategic importance of the region did not translate into an enhanced role for regional headquarters, and second, that American and Japanese MNCs are "unbundling" their European operations as a means of enhancing their flexibility. American MNCs preferred to carve up regional tasks for delegation to local subsidiaries, with coordination assured increasingly by "councils" bringing top European managers together. Japanese MNCs have not altered the formal organizational structure; but the recent internationalization of basic research labs in Europe has forced them to modify their previously monolithic approach to European subsidiaries.

Original languageEnglish
Pages (from-to)267-286
Number of pages20
JournalJournal of World Business
Volume34
Issue number3
DOIs
Publication statusPublished - 1999 Jan 1
Externally publishedYes

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ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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