RESEARCH CASE 01 / VENEZUELA
Coordinating headquarters and local teams
A study of 41 multinational subsidiaries in Venezuela examined how headquarters and local operations coordinate and maintain control.
THE RESEARCH
The qualitative study covered subsidiaries across different sectors, countries of origin and resource levels. Formalization was the most widely used coordination and control mechanism, followed by socialization. Many subsidiaries combined several dominant mechanisms rather than relying on a single approach. The authors found more intensive headquarters-subsidiary relationships than earlier research had reported, potentially reflecting local operating conditions. Patterns also varied with subsidiary resources and the parent company's country of origin. These findings describe how coordination was organized; they do not establish that adding controls or socialization necessarily improves performance.
KEY TAKEAWAY | INTERA PERSPECTIVE
Design formal processes and shared ways of working together, with explicit attention to the local operating context.
SOURCE / REFERENCE
Sigala-Paparella, L. E., & Zapata-Rotundo, G. J. (2012). Intensidad de las relaciones matriz-filial en filiales venezolanas de empresas multinacionales. Innovar, 22(44), 123-138.
Read the original sourceBased on published academic research. Not an Intera client engagement. Key takeaways are Intera editorial interpretations.