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Implementing Global Strategy: Characteristics of Global Subsidiary Mandates

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Abstract

Implementing a global strategy requires coordinating subsidiary activities across country locations. The assumption often made is that such coordination must be managed at headquarters. However, an alternate approach is decentralized-centralized responsibilities in which different subsidiaries within the multinational are given worldwide mandates to manage specific products or products lines. This study identifies subsidiary characteristics that are associated with receiving a global mandate by examining foreign subsidiaries located in France, Germany, Japan, U.K., U.S., and Canada.

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*Kendall Roth is Associate Professor of International Business at the University of South Carolina. His research interests focus on the implementation of international strategies, competition in global industries, and top management decision-making.

**Allen J. Morrison is Associate Professor of Business Management at the Thunderbird-AGSIM. His research interests are in the areas of world product mandates, competition in global industries, and the strategic management of multinational corporations.

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Roth, K., Morrison, A. Implementing Global Strategy: Characteristics of Global Subsidiary Mandates. J Int Bus Stud 23, 715–735 (1992). https://doi.org/10.1057/palgrave.jibs.8490285

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490285

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