Specifics of financial performance of subsidiaries of multinational corporations in the Czech Republic
| Authors | |
|---|---|
| Year of publication | 2015 |
| Type | Article in Proceedings |
| Conference | Proceedings of Selected Papers |
| MU Faculty or unit | |
| Citation | |
| web | http://konference.fbm.vutbr.cz/ic/useruploads/files/SELECTED_PAPERS_2015.pdf |
| Field | Management and administrative |
| Keywords | MNC;organizational strategy;financial performance;relationship between headquarter and subsidiary;empirical research |
| Attached files | |
| Description | This paper focuses on the specifics of the evaluation of the MNC’s subsidiaries. It deals mainly with issues of financial performance in relation to the organizational strategy ccording to the theory made by Bartlett and Ghoshal.The evaluation showed that for MNCs applying in Czech branches centralization strategy (but not those who choose such a strategy globally) the financial performance of the centralized subsidiaries is not important. These subsidiaries should have other objectives than high profit, e.g. strategic objectives in some categories of the costs, effectiveness or the volume and quality of production. Nevertheless optimal balance of centralization and decentralization in the form of a transition strategy GT encourages subsidiary to higher financial performance. |