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F. Meizer, J. Minichmayr, W. Sihn:
"COST- AND COMPLEXITY ISSUES FOR EXPANDING MEDIUM SIZED SUPPLIERS";
Talk: IFAC Workshop on Modelling, Management and Control, Budapest (invited); 2007-11-14; in: "IFAC Workshop on Manufacturing Modelling, Management and Control", (2007), 19 - 23.

The benefits associated with production factors are a common reason in the automotive industry for expansion and relocation to low-wage countries. However this can lead to a complexity within the organisational structure of the company, which can lead to redundancies and turbulences - not only in the new subsidiaries but also in the organisation and workflow in head office. These effects are barely noticeable in larger companies, but can lead to serious fundamental problems for medium-sized companies.
Only organisations, which have been well-prepared in advance, can integrate new subsidiaries into their existing network and thus take advantage of their full potential. This paper describes a phase model for adapting the organisational structure during this expansion phase and discusses in detail the necessity of preparing the organisation for change well in advance.

http://publik.tuwien.ac.at/files/pub-mb_5978.pdf