Abstract

SIGALA PAPARELLA, Luis E; ZAPATA ROTUNDO, Gerardo J  and  LEON DARDER, Fidel. Coordination mechanisms and parent-subsidiary relationships in volatile environments: a theoretical approach. Pensam. gest. [online]. 2015, n.38, pp.50-76. ISSN 1657-6276.  https://doi.org/10.14482/pege.37.7020.

This paper aims to analyze how a volatile local environment can influence the ratio of coordination mechanisms in parent-subsidiary relationships: centralization, formalization and socialization, taking into account the existence of some contingency factors like the strategic approach of the multinational, country of origin, complexity, size and age. Likewise, Ghoshal and Nohria's (1989) typology of the parent-subsidiary relationship structure is applied considering volatile environments. Some propositions are posed from discussion; the main conclusion is that in volatile environments, parent-subsidiary relationships should increase the use of coordination mechanisms, and according with the typology analyzed, only two of the structures, the hierarchical and the federation types, are more likely to be found in those environments.

Keywords : Foreign subsidiaries; parent-subsidiary relationships; coordination mechanisms; volatile environment.

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