University of Sussex
Browse

File(s) not publicly available

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 Visser
We 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 & Organization

ISSN

1833-3672

Publisher

Cambridge University Press

Issue

6

Volume

20

Page range

832-850

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2017-06-06

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC