Divisionalization of Multinational Corporations - A Glocalization Approach

Abstract: Background: Taking into consideration that multinational corporations (MNCs) need to not only act on a global level, but also with local adaptation, there is a need of filling out the existing gap in the theory of management control in the subject of divisionalisation.  Purpose: The research investigates the gap in the theory of management control with the lens of glocalization in order to answer and understand why MNCs do divizionalize. Methodology: Qualitative case-study based on semi-structured interviews with seven respondents with the role of global and local managers in a MNC.  Findings: The findings interpret that a MNC do divisionalize based on the seven reasons; Replication, Uniqueness, Monetary, Entrepreneurship, Agility, Sense-making and Support. Which are interpreted in the perspective of common sense and necessary tension within the organization. A contribution that is applying the glocalization perspective to the management control theory.