Abstract
This study focuses on the problem of managing reorganizing by using the sample of multinational corporation subsidiaries in emerging markets. Multinational corporation subsidiaries are typically required to reorganize themselves, since they face totally different business environments from their parent countries. Based on previous research, our prediction is that reorganizing is promoted by introducing alternative value systems, authority to decide, and interactions with external actors that have heterogeneous decision and behavior patterns. On the contrary, reorganizing is restrained and conventional business practices are accepted when companies are accepting conventional value systems and not possessing authority to decide. We examined those predictions by using data from 162 emerging market subsidiaries that are headquartered in Japan.
