Managing the Embedded Multinational: A Business Network View

It has long been recognized that controlling complex organizations like multinational enterprises (MNEs) is a multi-dimensional problem. Efficient organizational structures based on Coasian transaction costs often run afoul of individual or sub-unit goals, resulting in vertical conflicts between headquarters and subsidiaries (Nohria and Ghoshal, 1994). Further, horizontal competition among subsidiaries intent on promoting their own strategic...