Strategic Management: Factors Influencing (De) Centralization in Multinational Corporations Operating in Slovakia

Abstract

In the field of (de)centralization of companies, there is a need to explore the factors that influence decision-making processes and organizational structures. However, limited research has focused specifically on the Slovakian business environment, warranting further investigation. This article aims to examine the relationships between ownership structure, the establishment of direct foreign equity participation (DFEP) and company size in relation to aspects of (de)centralization in a select group of companies in Slovakia. The aim is to highlight the importance of the (de)centralization problem. The researchers employed statistical methods to analyse the data, including the nonparametric Kruskal‒Wallis test and post hoc analysis using the pairwise comparison post hoc test. These tests were applied to identify statistically significant differences between the chosen factors and individual variables relating to (de)centralization. The findings indicate that the establishment of DFEP significantly influences (de)centralization in areas such as the purchase of materials/goods, production/planning/provision, marketing planning, sales to the end customer and the filling of managerial positions. Ownership structure was also found to significantly influence (de)centralization with regard to the purchase of materials/goods, production/planning/provision and marketing planning. Similarly, company size seems to play a role in strategic management and production/planning/provision decisions. This study contributes to the existing body of knowledge by offering insights into the specific context of (de)centralization in the Slovakian business environment. The use of statistical analysis methods enhances the rigor of the findings. The findings provide practical implications for decision-making processes, resource allocation strategies and organizational design. This research fills a gap in the literature by focusing on the relationships between ownership structure, the establishment of DFEP and company size within the context of (de)centralization. This study serves as a foundation for future research in this field, guiding further exploration and understanding of the factors affecting (de)centralization in Slovakia.