HQ-Subsidiary Relationships in MNCs

(Research programme 1993-current)

This research programme started as the core of my PhD studies. It investigated various aspects of strategy, structure, control mechanisms and HRM in MNCs. It involved a large-scale international mail survey where date were collected from 287 subsidiaries in 22 countries. The main objective of this research programme was to investigate whether and to what extent characteristics of both subsidiaries and headquarters of a multinational company could explain the type of control mechanisms that are used by headquarters towards a particular subsidiary.

A further important objective of the programme was to investigate whether particular control portfolios could be identified for certain clusters of headquarters and subsidiary characteristics and whether companies using these "ideal" control portfolios were more effective than others. Finally, special attention was paid to the role of expatriate managers in realising control based on socialisation and informal networks (see also International HRM & Staffing Policies).

An early interest in this area led to two book chapters based in my research-based edited textbook on IHRM (see also International HRM & Staffing Policies) and a chapter in an edited research monograph. The full results of this programme were published in Managing the Multinationals (Edward Elgar, 1999). The book has reached quite a large audience (a web search leads to more than 80 hits) and a lot of PhD students and PhD supervisors have indicated to me that they find the detailed account of my study highly useful. Subsequent journal articles in top international journals expanded the analysis and focused in more detail on topics such as MNC typologies, management of entry modes and the country-of-origin effect. My 2000 Journal of International Business Studies article is being cited regularly in journals and my 2002 Strategic Management Journal article has been very well received by colleagues in the area and is currently cited widely in both conference papers and journal articles. The 2003 Organization Studies article on country-of-origin effects has been well received in the field and received the Roland Calori prize for the best paper published in Organization Studies 2003-2004. A second article providing a conceptual review of the country-of-origin effects was published in Management International Review.

A survey conducted in collaboration with Prof. Niels Noorderhaven provided data for 175 subsidiaries of MNCs headquartered the US, Japan, France, Germany, UK and the Netherlands. So far we have published two papers from these data. Analogous to my Journal of International Business Studies article, the first paper provided the first large-scale empirical test and extension of what is the most influential typology in the field of subsidiary management - the Gupta & Govindarajan typology of subsidiaries based on knowledge flows. Reflecting my current geographical location, we have also published a paper on the role of geographical distance on the management of subsidiaries, comparing Australian and New Zealand subsidiaries to subsidiaries all over the world. A third paper, currently under review, investigates the determinants of knowledge flows in MNCs and points to the increasing role of inter-subsidiary flows in this field. A final paper in this area (an invited contribution to a research volume) compares the impact of country-of-origin on HQ-subsidiary relationships for German, Japanese, British and US MNCs at two points in time (1995 and 2002). As such this paper provides a much-needed large-scale empirical test (and dismissal) of the claim that management practices in MNCs are converging to an Anglo-American model. A related paper with Markus Pudelko looks at management practices in Europe and assesses the extent to which a common European model is present, whereas a paper with Anne-Katrin Neyer focuses on the impact of culture on interactions in the European Commission. A new research project (see Language in International Business for more detail) looks at the role of language in HQ-subsidiary relationships.

Related publications

Related online papers - Full list of publications

(Excludes working papers; * indicates a refereed journal article or research-based book chapter.)

1. * Noorderhaven, N.G.; Harzing, A.W.K. (forth) Factors Influencing Knowledge Flows Within MNCs, accepted for Journal of International Business Studies.
2. * Harzing, A.W.K.; Noorderhaven, N.G. (2008) Headquarters-subsidiary relationships and the country-of-origin effect, in: Feldman, M.P. & Santangelo, G.D. (2008) New Perspectives in IB Research - Progress in International Business Research, Volume 3, pp. 13–40.
3. * Neyer, A.-K.; Harzing, A.W.K. (2008) The impact of culture on interactions: Five lessons learned from the European Commission, European Management Journal, vol. 26, no. 5, pp. 325-334.
4. Harzing, A.W.K.; Noorderhaven, N.G. (2008) Headquarters-subsidiary relationships and the country-of-origin effect, paper presented at the EURAM Annual conference, Ljubljana May 15-17 2008.
5. * Harzing, A.W.K.; Feely, A.J. (2008) The Language Barrier and its Implications for HQ-Subsidiary Relationships, accepted for Cross-cultural Management: An International Journal, vol. 15, no. 1, pp. 49-60.
6. * Pudelko, M.; Harzing, A.W.K. (2007) How European is Management in Europe? An Analysis of Past, Present and Future Management Practices in Europe, European Journal of International Management, vol. 1, no. 3, pp. 206-224.
7. * Harzing, A.W.K.; Noorderhaven, N.G. (2007) Australian and New Zealand subsidiaries: Victims of their geographical isolation?, in: Merrett, D.T.; Dick, H., The Internationalisation Strategies of Firms: The Australian Experience in Global Economics, Cheltenham: Edward Elgar.
8. Noorderhaven, N.G.; Harzing, A.W.K. (2006) Factors Influencing Knowledge Flows Within MNCs, paper presented at the 66th Annual meeting of the Academy of Management, Atlanta, August 11-16.
9. * Harzing, A.W.K.; Noorderhaven, N.G. (2006) Knowledge flows in MNCs: An empirical test and extension of Gupta & Govindarajan's typology of subsidiary roles, International Business Review, vol. 15, no. 3.
10. * Harzing, A.W.K.; Noorderhaven, N.G. (2006) Geographical Distance and the Role and Management of Subsidiaries: The Case of Subsidiaries Down-Under, Asia-Pacific Journal of Management, vol. 23, no. 2, pp. 167-185.
11. Harzing, A.W.K.; Noorderhaven, N.G. (2005) MNC Subsidiaries Down-Under: Victims of Their Geographical Isolation?, conference proceedings of the ANZIBA annual meeting, November 10-11, Melbourne, Australia. [Winner of the Best Paper Award in the International Management Stream.]
12. Harzing, A.W.K.; Noorderhaven, N.G. (2005) Knowledge flows in MNCs: A typology of subsidiary roles, paper presented at the 65th Annual meeting of the Academy of Management, Honolulu, August 5-10.
13. Harzing, A.W.K.; Noorderhaven, N.G. (2004) Knowledge flows in MNCs: An empirical test and extension of Gupta & Govindarajan's typology of subsidiary roles, conference proceedings of the 30th EIBA conference, December 5-8, 2004, Ljubljana, Slovenia.
14. Feely, A.J.; Harzing, A.W.K. (2004) The Language Barrier and its Implications for HQ-Subsidiary Relationships, paper presented at the 64th Annual meeting of the Academy of Management, New Orleans, August 6-11.
15. * Noorderhaven, N.G.; Harzing, A.W.K. (2003) The "Country-of-origin Effect" in multinational corporations: Sources, mechanisms and moderating conditions, Management International Review, vol. 43, special issue 2, pp. 47-66.
16. * Harzing, A.W.K.; Sorge, A.M. (2003) The relative impact of country-of-origin and universal contingencies on internationalization strategies and corporate control in multinational enterprises: Worldwide and European perspectives, Organisation Studies, vol. 24 (2), pp. 187-214.
17. * Harzing, A.W.K.; Sorge, A.M.; Paauwe, J. (2002) HQ-subsidiary relationships in multinational companies: A British-German comparison, in: Geppert, M.; Matten, D.; Williams, K. (Eds.): Challenges for European Management in a Global Context - Experiences from Britain and Germany, Basingstoke, London, New York: Palgrave.
18. * Harzing, A.W.K. (2002) Acquisitions versus greenfield investments: International strategy and management of entry modes, Strategic Management Journal, vol. 23, no. 3.
19. Harzing, A.W.K (2001) Acquisitions vs. Greenfield Entry Strategies: Exploring the impact of the MNC's international strategy on the choice and management of different entry modes, paper presented at the 2001 Annual meeting of the AIB, November 16-19, Sydney.
20. * Harzing, A.W.K. (2000) An empirical test and extension of the Bartlett and Ghoshal typology of multinational companies, Journal of International Business Studies, vol. 31, no. 1, pp. 101-120.
21. Harzing, A.W.K (2000) Acquisitions versus greenfield investments: Exploring the impact of the MNC's international strategy, paper presented at 26th EIBA conference, Maastricht, 10-12 December.
22. Harzing, A.W.K (2000) Societal embeddedness of internationalization strategies and corporate control: World-wide and European close-quarter perspectives, paper presented at the 60th annual meeting of the Academy of Management, Toronto, 4-9 August.
23. Harzing, A.W.K (2000) Societal embeddedness of internationalization strategies and corporate control: World-wide and European close-quarter perspectives, conference proceedings of the 27th Annual Conference of the UK Chapter of the AIB, Glasgow, 14-15 April, pp. 439-478.
24. Harzing, A.W.K. (2000) Structuring International Organisations, in: Tayeb, M. (ed.): International Business: Theories, Policies and Practices, Harlow: Pearson Education, pp. 419-437.
25. * Harzing, A.W.K. (1999) Managing the multinationals: An international study of control mechanisms, Cheltenham: Edward Elgar.
26. Harzing, A.W.K. (1999) The European monolith: another myth in international management?, Paper presented at the ESRI Thematic Research Workshop on Economic Actors, National Systems and International Contexts, September 21-24, Copenhagen, Denmark.
27. Harzing, A.W.K. (1999) Plans, procedures and bumble-bees, an international study of control mechanisms in multinational companies, paper presented at the 59th annual meeting of the Academy of Management, Chicago, 8-11 August. (Presentation of PhD thesis, finalist for Barry M. Richard dissertation award.)
28. Harzing, A.W.K. (1998) Configuration analysis in international management: The way forward?, conference proceedings of the 25th Annual Conference of the UK Chapter of the AIB, London, 3-4 April, pp. 264-289.
29. Harzing, A.W.K. (1998) Plans, procedures and bumble-bees, an international study of control mechanisms in multinational companies, paper presented at 24th EIBA conference, Jerusalem, 13-15 December. (Presentation of PhD thesis, finalist for Gunnar Hedlund dissertation award.)
30. * Harzing, A.W.K. (1998) Integration within MNCs: from multidomestic to global and transnational firms?, in: Mirza, H.: Global Competitive Strategies in the New World Economy, Multilateralism, Regionalization and The Transnational Firm, Cheltenham: Edward Elgar, pp. 313-326.
31. Harzing, A.W.K. (1998) Acquisitions versus greenfield investments: Both sides of the picture, paper presented at the 1998 annual meeting of the AIB, October 7-10, Vienna, Austria.
32. Harzing, A.W.K. (1996) Environment, Strategy and structure in multinational companies, Focused company report doctoral research project, University of Limburg: Maastricht.
33. Harzing, A.W.K. (1996) Control mechanisms in multinational companies, Focused company report doctoral research project, University of Limburg: Maastricht.
34. * Harzing, A.W.K. (1995) Internationalization and the international division of labour, in: Harzing, A.W.K.; Van Ruysseveldt, J. (eds.), International Human Resource Management, London: Sage Publications, pp. 1-24.
35. * Harzing, A.W.K. (1995) Strategic planning in multinational firms, in: Harzing, A.W.K.; Van Ruysseveldt, J. (eds.), International Human Resource Management, London: Sage Publications, pp. 25-50.
36. Harzing, A.W.K. (1994) Organizational bumble-bees: International transfers as a control mechanism in multinational companies, paper presented at the doctoral tutorial of the 20th annual meeting of the European International Business Association, Warsaw, 11-14 December.