Changes in the Strategies and Structures of Subsidiaries of Multinational Corporations during the Covid 19 Pandemic

Dariusz Sobotkiewicz
European Research Studies Journal, Volume XXIV, Issue 4, 723-736, 2021
DOI: 10.35808/ersj/2623


Purpose: The purpose of this paper is to present and evaluate the changes that have occurred in the structures and strategies of subsidiaries of multinational corporations in 2020 - 2021 during the Covid 19 pandemic. The goal was implemented through an analysis of the literature on the subject and empirical research in subsidiaries of international corporations located in Poland. Design/Methodology/Approach: The study presents the following research problem: What changes took place in the structures and strategies of subsidiaries of multinational corporations in 2020-2021 during the Covid 19 pandemic? Solving the research problem boiled down to carrying out the research process. For this purpose, the method of analysis of management literature was used and telephone interviews were carried out in subsidiaries of international corporations in the automotive industry. The research was conducted among key suppliers of components for car production in Poland. Findings: The conducted research shows that the changes in the structures of subsidiaries concerned mainly the production area. However, in the case of the strategy, they concerned maintaining the planned sales volume and taking a number of actions to adapt to the new situation. Practical Implications: The results presented in the article can be used by other multi-stakeholder organizations to redesign organizational structures and design more flexible strategies. The results of the research showed changes that were implemented by subsidiaries in order to survive on the market. Originality/ Value: Research has shown that the subsidiaries, by implementing specific changes during COVID 19, could continue to function and achieve the goals included in the corporate strategy. Even though they had to make changes in their organizational structures and strategies.

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