MNCs as dispersed structures of power: Performance and management implications of power distribution in the subsidiary portfolio

Multinational corporations (MNCs) are considered as dispersed structures of power, in which diverse headquarters (HQ)–subsidiary power relationships collectively influence performance and management. Yet, few studies have accounted for the subsidiary portfolio characteristics shaped by entire set differentiated HQ–subsidiary relationships, little is known about their effect on management decisions MNCs. Drawing agency resource dependence theories, this study investigates how structure MNC, or pattern distribution portfolio, affects MNC expatriate utilization. Results from a comprehensive panel Korean MNCs show that degree concentration has inverted U-shaped with use control. However, results also reveal these vary between manufacturing downstream portfolios. These findings suggest structural important determinants This opens an new avenue international business scholarship explicitly conceptualizing subsidiaries examining consequences characteristics.