Abstract

Research on the relationship between headquarters and subsidiaries has been a very important topic in the field of International Business. However, from the perspective of subsidiaries, it has not been discussed in depth what kind of organization specifically means a headquarter organization. The headquarters of a multinational corporation can be various organizations, including a holding company, a corporate control tower, an affiliate's headquarter, or regional headquarters. Therefore, the purpose of this study is to investigate the multiple layered structure of headquarters in South Korean multinational corporations based on a case study of six companies. In this study, the main roles of headquarters are explained by drawing a global integration perspective, bounded rationality, and a resource dependency theory. Furthermore, the relationship the team functions of subsidiaries and their collaboration with headquarters are explored. Finally, theoretical and practical implications for establishing strong relations between headquarters and subsidiaries are presented.

Full Text
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