The Study on the Choice of Multinational Enterprises Organization Structure Based on MNL Model

This paper develops and tests a model of the structure choice of multinational company. The model is built under the framework of the contingency, integration-responsiveness, and organizational economics. Under the assumption that both the multinational company and its managers make decisions on the basis of their self- interests, this model combines above three frameworks. The model looks the exposition of knowledge-based resources as a key determinant of multinational company structure. The model is tested on a sample of 80 multinational companies using a multivariate regression approach. The results confirm the role of knowledge-based resources in influencing multinational company structures.