Strategic and architectural dimensions of the decision-making processes in South African multinational corporations

Luiz, John M and Visser, Grant (2014) Strategic and architectural dimensions of the decision-making processes in South African multinational corporations. Journal of Management & Organization, 20 (6). pp. 832-850. ISSN 1833-3672

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Abstract

We examine the manner in which South African-owned multinationals devolve power to their international subsidiaries in Africa, and the resulting effects of the interaction between strategy and structure. The research suggests that a dynamic process of power distribution may develop, in terms of the following: (1) the performance of the subsidiary, its expertise and experience to adapt to local market demands; and (2) the multinational’s need to manage the risks propagated by the African operating environment in which it operates. There is a dual facet to power devolvement, one in which South African multinationals opt for risk mitigation through long-standing control, often at the expense of operational adaptation. In contrast with the literature, which sees multinational corporations as differentiated networks, in the South African case we find a more traditional approach with clear headquarters and ‘miniature replica’ subsidiaries. This suggests that South African multinational corporations are still emerging and that it will take time to develop differentiated networks.

Item Type: Article
Keywords: Multinational corporations, Africa, South Africa, MNC–subsidiary relationships
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Stacey Goldup
Date Deposited: 06 Jun 2017 11:19
Last Modified: 06 Jun 2017 11:19
URI: http://sro.sussex.ac.uk/id/eprint/68364
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