Change? - Yes we can. A study analysing the implementation of structural changes in a multidivisional MNC.

Abstract

As Multinational Corporations (MNCs) grow and expand the importance of how to manage the headquarter-subsidiary relationship has grown, and evermore when adding into the equation the centralisation of different units and tasks. Centralisation studies in international business (IB) studies has often been directed towards companies, which have a greater level of homogeneity. This study aims to investigate further how the implementation of centralisation is done in a multidivisional structured MNC where aspects are far more heterogeneous, and what factors affect the outcome of this process. An embedded single-case study approach has been adapted for the thesis which has been based on 13 semi-structured interviews performed with participants from four countries. The findings of this study bring forth that centralisation can be performed in different manners in the same company depending on the nature of the task and unit being changed. Further, the results show that local managers acting as change agents, greatly impact the change process and the outcome of a centralisation project.