Abstract

SIGALA-PAPARELLA, Luis E  and  ZAPATA-ROTUNDO, Gerardo J. Intensity of Headquarter-Subsidiary Relationships in Venezuelan Subsidiaries of Multinational Corporations. Innovar [online]. 2012, vol.22, n.44, pp.123-138. ISSN 0121-5051.

This paper studies the intensity of headquarter-subsidiary relationships in Venezuelan subsidiaries, through the analysis of the presence of dominant mechanisms of coordination and control in those relationships, taking into consideration the nature of the Venezuelan environment. A qualitative methodology was used, based on a case study of forty-one subsidiaries from different sectors, countries of origin and resource levels. The analysis showed that formalization is the most widelyused mechanism for coordination and control of headquarter-subsidiary relationships, followed by socialization. It was also observed that subsidiary types according to their resource level and country of origin act as moderating factors in the use of mechanisms of coordination and control. The main conclusion involved a dominant and simultaneous use of several mechanisms for coordination and control at many of the Venezuelan subsidiaries studied, suggesting that headquarter-subsidiary relationships in Venezuela are more intense that what was reported in previous studies, probably because of the local environment, among other reasons.

Keywords : subsidiary; headquarter-subsidiary relationships; mechanisms for coordination and control; Venezuela.

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