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The glue that binds: how organizational identification drives innovation performance in foreign-owned subsidiaries

Sven Dahms (College of Business, Abu Dhabi University, Abu Dhabi, United Arab Emirates)
Sladjana Cabrilo (Department of International Business Administration, I-Shou University, Kaohsiung, Taiwan)
Suthikorn Kingkaew (Independent Consultant and Researcher, Bangkok, Thailand)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 4 December 2024

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Abstract

Purpose

Although organizational identification has been recognized as crucial for multinational enterprises, its configurations regarding innovation performance at the subsidiary level have hitherto received scant attention. Accordingly, the purpose of this research is to identify the types of configurations in which organizational identification in foreign-owned subsidiaries leads to high innovation performance.

Design/methodology/approach

We base our research on social identity theory and the neo-configurational perspective to test our framework using survey data collected from subsidiaries located in Thailand and Vietnam.

Findings

Our results provide evidence that organizational identification serves as a glue that binds strong inter- and intra-organizational network relationships to drive innovation performance. While we find some variation in that pattern between the two host countries, it appears overall that the conditions of expatriates in top management and the geographic distance between home and host country only play a peripheral role. We identify the “integrated innovation driver” and “distant local hub” as two subsidiary archetypes that show how organizational identity can drive high innovation performance in subsidiaries.

Originality/value

This study is one of the first to empirically investigate the main complementing factors in the context of organizational identification and innovation in foreign-owned subsidiaries, which have previously predominantly been investigated in isolation of each other.

Keywords

Citation

Dahms, S., Cabrilo, S. and Kingkaew, S. (2024), "The glue that binds: how organizational identification drives innovation performance in foreign-owned subsidiaries", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-02-2024-0338

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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