Subsidiary autonomy and multinational enterprises structures (case of the Czech Republic)

Abstract

Using the sample of 335 subsidiaries in a CEE country, this article investigates the relationship between the number and type of regional headquarters (RHQs) in a MNE organizational structure and the subsidiary decision-making autonomy. The results show that almost half of the MNEs have more than one RHQ in their structure. Still, the more RHQs in the structure do not mean a higher level of centralization. Instead, the inverted U-shape seems to reflect the relationship. Moreover, within different structures, companies are choosing different areas to centralize. The results provide a better understanding of the subsidiary autonomy and offer a different view on the structure–autonomy relationship.