The Relationship Between Types of Network Organization and the Adoption of Management Mechanisms：An Empirical Study of Production Transaction of MNC’s Subsidiaries in Taiwan
Applying network theory, this paper examines the relationship between types of network organization and adoption of management mechanisms on a sample of 50 MNC's subsidiaries in Taiwan. Based on "the product transaction density" with an MNC's enterprise group and with local firms, the subsidiaries can be classified into three types of network organization, namely, self-sufficiency, production-based, and operation-center. The research findings are: (1)for operation-center subsidiaries, the headquarters prefer to adopt multiple management mechanisms simultaneously; (2)for production-based subsidiaries, the headquarters prefer bureaucratic management mechanisms; and (3)for self-sufficiency subsidiaries, the headquarters prefer bureaucratic and cultural management mechanisms.
