This research developed a conceptual framework for "network
organization" and first classified subsidiaries into various
types of network organization and conducted a survey.
In summary, the research conclusions are as follows:
1.According to "the transaction density with local firms" and
"the transaction density with the MNC''s enterprise group",
the subsidiaries of MNCs in Taiwan can be classified into
three types of network organization: self-sufficiency,
production-based, and operation-center.
2.Operation-center subsidiaries have the highest intensities in
most items of administration management mechanisms. They are
the highest or the second highest in various items of personnel,
performance, and cultural management mechanisms. Their
headquarters preferred to adopt multiple management mechanisms
simultaneously.
3.With the simplest transaction relationship, the headquarters
of production-based subsidiaries only prefer some administration
mechanisms, such as "the explicit rules and standard operation
process" and "standardization in product design and manufacturing."
4.The self-sufficiency subsidiaries have little transaction
relationship with the MNC''s enterprise group. They are almost
self-sufficient in local market and highly autonomous from
headquarters. Besides, they have the highest degree of freedom
and delegation from headquarters. The preferred management
mechanisms of headquarters are "output control" and "informal
mechanisms to solve conflicts among subsidiaries".