Headquarters and subsidiaries: Theories of convergence, divergence, crossvengence
When the goal of a headquarters is to integrate closely with a subsidiary, it becomes essential to understand culturally-defined behaviours and values, in addition to local laws and practices.
How useful are theories of convergence, divergence and crossvergence in explaining the complexities of relationships between headquarters and subsidiaries, and how is this theoretical framework similar to or different from other cross-cultural management frameworks? Which theoretical framework(s) would you apply when considering how to bring about more effective integration with subsidiaries and minimise risk for headquarters?