Influence Of Multinational Companies' Organizational Structure On Parent Company Performance

With the development of internationalization,the establishment of overseas subsidiaries has become an important strategy for multinational corporations to update technology and expand aboard.The subsidiaries have been embedded into various industries and form a huge network of subsidiaries.It is a great interest of scholars and corporate managers that whether a multinational company should adopt a"centralized"organizational structure or a"decentralized"organizational structure when the company is in the process of internationalization.As a representative emerging market country,Chinese multinational corporations have their own specific characteristics in the management of overseas subsidiaries,and the situation it faces with is more complicated.How to choose the suitable international organization structure is effective for their internationalization.This paper analyzes the impact of the international organization structure of Chinese multinational corporations on business performance.The main contents of this paper are as follows:Firstly,it summarizes the domestic and international literatures on the meanings of internationalization,the relationship among internationalization,organizational structure and performance,and the research methods of international organization structure of multinational corporations.Secondly,it defines the international organization structure of multinational corporations,analyzes the characteristics of different international organization structures,obtain two hypotheses through theoretical analysis,which are,the"centralized"organizational structure is conducive to enhance the parent company's business performance and the parent company's international experience will promote the"centralized"organizational structure to improve the parent company's business performance.Thirdly,through"OLS+robust standard error"model and Bayesian neural network model,it selects the data of the top 200 listed companies in China ranked by overseas income for empirical analysis.It is found that if the organizational structure of Chinese multinational corporations is more centralized,the performance of parent company's business performance will be better.And the accumulation of parent company's international experience will promote the impact of "centralized" organizational structure on performance.Therefore,in order to improve the business performance of Chinese multinational companies,enterprises should consider adopting a"centralized"organizational structure to managing overseas subsidiaries and continuously enrich their international experience for management.