The Coordination Imperative for MNE: Empirical Evidence from Foreign Operations in Greece

Abstract

Globally, Multinational Enterprises (MNEs) are increasingly focusing on devising strategies in order to balance between the local responsiveness at the subsidiary level and the international integration of operations for global competitiveness. It is against this background, the research studies focusing on the need for evolving effective coordination functions within the multinational network are gaining importance. The present research study makes an attempt to investigate the prevalence of the specific coordination mechanisms in the management of MNEs' activities in Greece and relates them to the underlying corporate culture, relevant information technology mechanisms and the intrinsic organizational architectures so as to serve as valuable tool for managing the interdependencies among the MNE subunits. A survey instrument (questionnaire) was administered to a sample size of 317 foreign firms in Greece to gain insights in to the various factors that determined the use of the appropriate coordination mechanisms so as to manage the interdependencies between HQs and subsidiaries. Multiple regression method was used for our empirical analysis and the results supported the hypotheses put forward in the research design. Our findings further demonstrated that MNEs in Greece manage coordination by tailoring the appropriate instruments to the specific mandates assigned to their subsidiaries thereof.