| Author: | Govindarajan, V. |
| Title: | Decentralization, strategy, and effectiveness of strategic business units in multibusiness organizations. |
| Journal: | Academy of Management Review
1986 : OCT, VOL. 11:4, p. 844-856 |
| Index terms: | MULTIPRODUCT COMPANIES MULTIPLANT COMPANIES DECENTRALISATION STRATEGY EFFECTIVENESS |
| Language: | eng |
| Abstract: | The relationship between decentralization and the effectiveness of strategic business units within multibusiness organizations is examined. The strategy of the strategic business unit is viewed on two independent dimensions: mission (goals) and competitive strategy (how) to compete to achieve these goals). Three strategic continuant are considered and in each case it is proposed that the degree of decentralization of decision-making authority delegated to the general manager of the unit should be closely aligned with the strategy to optimize the effectiveness of the strategic business unit. |
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