A study on managing headquarter-subsidiary relations at subsidiary level of multinational companies (MNC) in fast moving consumer goods (FMCG) industry in Hong Kong

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A study on managing headquarter-subsidiary relations at subsidiary level of multinational companies (MNC) in fast moving consumer goods (FMCG) industry in Hong Kong

 

Author: Tung, Wai-ching Maynard
Title: A study on managing headquarter-subsidiary relations at subsidiary level of multinational companies (MNC) in fast moving consumer goods (FMCG) industry in Hong Kong
Degree: M.B.A.
Year: 1998
Subject: International business enterprises -- China -- Hong Kong
Subsidiary corporations -- China -- Hong Kong
Consumer goods -- China -- Hong Kong
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: vi, 71 leaves : ill. ; 31 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1449861
URI: http://theses.lib.polyu.edu.hk/handle/200/3328
Abstract: Based on Nohria and Ghoshal's research of headquarter-subsidiary relations, it was shown that both differentiated fit and shared values have equifinality on multinational company's (MNC) performance. Differentiated fit involves the administrative control by means of centralization and formalization in different environment context of the subsidiary, while shared values involves a normative-cultural control on subsidiary. If the MNC as a whole has higher degree of differentiated fit and higher degree of shared values, the performance of the MNC as a whole would be more likely better. In this research project, we have tried to apply the same framework developed by Nohria and Ghoshal but investigated in the subsidiary level in the fast moving consumer goods (FMCG) industry in Hong Kong. We found similar results. The subsidiary performance is positively related to the differentiated fit as well as shared values. It is desirable to have both high degrees of differentiated fit and shared value for better subsidiary performance.

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