Interfere! How Chinese subsidiaries manage their global headquarters

Abstract

Purpose

With the increasing dependence on the Chinese market, Chinese subsidiary managers rather than Western managers in the headquarters take responsibility for the overall success of the multinational company (MNC). This paper aims to argue that Chinese managers need to actively interfere to guarantee the survival of the MNC. Transaction analysis is suggested as a tool to rebalance the relationship.

Design/methodology/approach

Based on illustrative material and experience cases, the authors highlight why and how Chinese subsidiary managers have to engage in interference management.

Findings

Introducing different strategies within transaction analysis shows how Western managers can deal with Chinese interference management to improve relationships.

Practical implications

With the use of transaction analysis, Western managers can verify their communication strategies and behavior to better relate to Chinese subsidiaries on an “adult” level.

Originality/value

Interference management is based on counterintuitive thought that Chinese subsidiary managers rather than headquarters become responsible for the overall success of the MNC. Transaction analysis is used to uncover hidden assumptions, communication strategies and behavior in headquarters–subsidiary relationships.

Citation

Metz, A. and Prange, C. (2021), "Interfere! How Chinese subsidiaries manage their global headquarters", Journal of Business Strategy, Vol. 42 No. 3, pp. 151-158. https://doi.org/10.1108/JBS-02-2020-0041