Analyzing Centralization and Decentralization in Parent-Subsidiary Corporations: A Context-Based Knowledge Transfer Perspective

Abstract

This paper provides an analysis of the management of centralization and decentralization within parent-subsidiary corporations, with a focus on context-based knowledge transfer dynamics. Drawing upon insights from organizational theory, knowledge management, and international business literature, the study explores how centralization and decentralization strategies influence the transfer of knowledge across different contexts within multinational corporations. Through a comparative analysis of centralized and decentralized organizational structures, the research examines the mechanisms and challenges involved in knowledge transfer processes between parent companies and their subsidiaries in diverse geographic, cultural, and institutional contexts. Additionally, the study investigates the role of contextual factors such as industry characteristics, regulatory environments, and organizational culture in shaping the effectiveness of centralization and decentralization approaches for knowledge transfer. By offering insights into the interplay between organizational structure and context-based knowledge transfer, this research aims to inform strategic decision-making and managerial practices in multinational corporations seeking to optimize knowledge sharing and innovation across their global operations.