›› 2012, Vol. 24 ›› Issue (1): 26-31.

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 ZHANG  Xiao-Yan   

  1. School of Economics & Management of Shanghai Maritime University, Shanghai 200135
  • Received:2012-04-26 Revised:2012-04-26 Online:2012-01-25 Published:2012-04-26

Abstract:   In the multinational corporation’s (MNC) subsidiary company evolution model, the subsidiary company obviously prefers to be autonomic. Autonomy may lead subsidiaries to go beyond their parent company's control, and become highly interested in idle resources and more motivated and innovative, but their parent company often has a concern that autonomic behavior of subsidiaries, due to its opportunistic nature, may deviate from parent company's resources deployment goal and cause MNC to lose its direction. This paper holds that the main transaction cost of the subsidiaries’ autonomic activities lies in parent company's bounded rationality rather than opportunism of subsidiaries, so the parent company should not only use the traditional tool of controlling and the coordinating to curb the opportunism, but also focus on the use of internal market mechanism and socialized method to reduce parent company's bounded rationality restraint, to form the common cognition map between the parent companies and subsidiaries, to construct a meaningful mutual benefit alliance, and to earn more profits from increasing autonomic activities of the subsidiaries.  

Key words:

margin: 0cm 20.15pt 0pt" class="MsoNormal" align="center">mso-bidi-font-size: 12.0pt, mso-font-kerning: 0pt" lang="EN-US">Research of Autonomic Activities of Subsidiaries of Multinational Companies