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Control, Performance, and Knowledge Transfers in Large Multinationals: Unilever in the United States, 1945–1980

Published online by Cambridge University Press:  08 April 2017

Geoffrey Jones
Geoffrey Jones
Affiliation:
GEOFFREY JONES is professor of business administration atHarvard Business School.
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Extract

This article considers key issues relating to the organization and performance of large multinational firms in the post-Second World War period. Although foreign direct investment is defined by ownership and control, in practice the nature of that “control” is far from straightforward. The issue of control is examined, as is the related question of the “stickiness” of knowledge within large international firms. The discussion draws on a case study of the Anglo-Dutch consumer goods manufacturer Unilever, which has been one of the largest direct investors in the United States in the twentieth century. After 1945 Unilever's once successful business in the United States began to decline, yet the parent company maintained an arms-length relationship with its U.S. affiliates, refusing to intervene in their management. Although Unilever “owned” large U.S. businesses, the question of whether it “controlled” them was more debatable.

Type
Articles
Information
Business History Review , Volume 76 , Issue 3 , Autumn 2002 , pp. 435 - 478
Copyright
Copyright © The President and Fellows of Harvard College 2002

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