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Strategic and architectural dimensions of the decision-making processes in South African multinational corporations
journal contribution
posted on 2023-06-09, 06:32 authored by John Da Silva LuizJohn Da Silva Luiz, Grant VisserWe examine the manner in which South African-owned multinationals devolve power to their international subsidiaries in Africa, and the resulting effects of the interaction between strategy and structure. The research suggests that a dynamic process of power distribution may develop, in terms of the following: (1) the performance of the subsidiary, its expertise and experience to adapt to local market demands; and (2) the multinational’s need to manage the risks propagated by the African operating environment in which it operates. There is a dual facet to power devolvement, one in which South African multinationals opt for risk mitigation through long-standing control, often at the expense of operational adaptation. In contrast with the literature, which sees multinational corporations as differentiated networks, in the South African case we find a more traditional approach with clear headquarters and ‘miniature replica’ subsidiaries. This suggests that South African multinational corporations are still emerging and that it will take time to develop differentiated networks.
History
Publication status
- Published
Journal
Journal of Management & OrganizationISSN
1833-3672Publisher
Cambridge University PressExternal DOI
Issue
6Volume
20Page range
832-850Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2017-06-06Usage metrics
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