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Book part
Publication date: 14 October 2015

Igor Gurkov

The aim of the chapter is to evaluate the concept of corporate parenting styles, identify missing elements in the theoretical constructs, and develop new theoretical constructs.

Abstract

Purpose

The aim of the chapter is to evaluate the concept of corporate parenting styles, identify missing elements in the theoretical constructs, and develop new theoretical constructs.

Methodology/approach

The chapter provides a summary of the existing literature on corporate parenting styles and uncovers the missing elements in the theoretical constructs. New theoretical constructs fill the gaps.

Findings

The chapter presents a new typology of corporate parenting style by combining corporate parents’ processes of adding value to and extracting value from subsidiaries. The five-type typology of corporate styles outlines the different levels of value addition and value extraction and various degrees of reciprocity in both processes. This chapter determines the most important factors that affect the selection of corporate parenting style. It postulates that the multinational corporation should exhibit different parenting styles toward its subsidiaries simultaneously and should be ready to amend its parenting styles to reflect changes in a subsidiary’s strategy and its motives for corporate ownership.

Research limitations/implications

A new agenda for empirical studies oriented toward variability of parenting styles is proposed. Empirical tests of our propositions are needed. I encourage researchers to extend our research by considering the regional (supra-national), industry, and individual levels of analyses.

Originality/value

The chapter provides a more realistic view of corporate parenting styles than that found in the previous literature and outlines promising directions for further theoretical and empirical research.

Article
Publication date: 22 January 2024

Igor Gurkov and Michael J. Morley

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication…

Abstract

Purpose

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication, recently identified by the United Nations Conference on Trade and Development, on the evolution of the corporate parenting styles (CPSs) of multinational corporations (MNCs).

Design/methodology/approach

This viewpoint presents a novel view of CPSs as a set of relationships between the corporate centers of MNCs and their subsidiaries, including domestic ones, identifies the most likely connections between anticipated trajectories of development in global industries and the evolution of CPSs of MNCs and outlines directions for further research.

Findings

The anticipated trajectories of the development of global industries may result in changes in prevailing CPSs and lead to the proliferation of previously less common parenting styles. Although many of the anticipated changes in CPSs may be pursued by corporate headquarters (CHQs), a combination of powerful subsidiaries putting bottom-up pressure on CHQs and powerful owners capable of imposing requirements on top management teams and generating top-down pressure may affect the CPSs used by corporations.

Originality/value

The authors connect possible trajectories of development for global industries with the evolution of CPSs of MNCs.

Article
Publication date: 21 March 2022

Igor Gurkov and Nikolay Filinov

This paper aims to outline the current and future influence of digitalization on the corporate parenting styles (CPSs) of multinational corporations (MNCs).

Abstract

Purpose

This paper aims to outline the current and future influence of digitalization on the corporate parenting styles (CPSs) of multinational corporations (MNCs).

Design/methodology/approach

The authors used conceptual modeling in this study.

Findings

The authors identified five types of CPSs (Hypnos, Cronus, Rhea, Zeus and Athena). The overall impact of digitalization on CPSs is related to new, formidable opportunities for decreasing costs and increasing the efficiency of the intra-corporate transfer of knowledge and talent. Furthermore, digitalization leads to greater tightness in subsidiaries’ performance targets and greater intensity of control over subsidiaries’ activities, lower degrees of subsidiary autonomy and lower level of trust between the corporate headquarters and subsidiary managers. These effects endanger the existence of two CPSs (Hypnos and Athena) and significant changes for the other three CPSs.

Practical implications

Digitalization may lead to more homogeneous corporations, with the lower variety of CPSs and the greater centralization of decision-making in corporate and regional headquarters and stronger control on operations and performance of subsidiaries. Increased opportunities of a horizontal value transfer (knowledge) within the corporation will present an additional competitive advantage of subsidiaries of MNCs. The increased ability and willingness of corporate and regional headquarters of value appropriation from subsidiaries in different forms (profit, revenues, knowledge and talent) will force subsidiaries to use that additional competitive advantage to become more aggressive competitors in local and global markets.

Originality/value

To the best of the authors’ knowledge, this is the first attempt in the academic literature to predict the mutation of CPSs of MNCs under the impact of digitalization.

Details

International Journal of Organizational Analysis, vol. 31 no. 6
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 1 March 2006

M. Morand and L. Rayman‐Bacchus

This paper investigates corporate social responsibility (CSR) policy management in multinational companies (MNCs). The focus is on examining the relationship between subsidiaries…

2218

Abstract

This paper investigates corporate social responsibility (CSR) policy management in multinational companies (MNCs). The focus is on examining the relationship between subsidiaries and headquarters in the management of CSR, in terms of the commonplace notion of ‘think global, act local’. Primary and secondary data was collected in one MNC and a case study produced. The findings show that the initiative to launch a CSR policy is taken and enacted exclusively by the headquarters, mainly as an answer to the financial and legal pressure felt to accompany the present widespread interest in CSR. Findings are articulated around three major steps used to manage CSR initiatives: the determination of values, the integration of those values in action and the evaluation of the policy. Consistency of policy is driven from headquarters, through adoption of a corporate value framework, while the implementation is to some extent localised. Feedback from subsidiaries is collected and shared by the centre, which also seeks out synergies in pursuit of increased efficiency. Corporate structure is therefore linked to CSR management. Implementation is observed to comprise three parts: the headquarters seek to motivate local actions through reference to the company culture, through directive measures, and by pedagogic action. Pedagogy comes out as necessary in order for the CSR policy to permeate the entire organisation and initiate the right actions and reactions in the variety of situations encountered throughout the organisation. Constant scrutiny and evaluation are considered necessary in order to sustain the credibility of the policy in relation to external stakeholders.

Details

Social Responsibility Journal, vol. 2 no. 3/4
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 28 March 2019

Igor Gurkov

The purpose of this paper is to introduce a new research construct to depict more accurately organisational structure and the direction of organisational changes in large…

Abstract

Purpose

The purpose of this paper is to introduce a new research construct to depict more accurately organisational structure and the direction of organisational changes in large multinational corporations (MNCs).

Design/methodology/approach

The paper presents an overview of the existing literature on the phenomenon of anisotropy in natural sciences and the organisation of large corporations, and transforms an identified phenomenon into a research construct of organisational theory.

Findings

This paper demonstrates that anisotropy, that is, the differences in the speed and conductivity of the movement of capital (money), products (goods and services), ideas (knowledge) and talent (people) in different directions within the corporation (from the centre to the subsidiaries, from the subsidiaries to the corporate centre and between subsidiaries) is the normal state of the internal space of the MNC. Anisotropy is increasing with the on-going restructuring of the global economic order. This leads to the divergence of business units in MNCs into the core and the periphery.

Research limitations/implications

The paper outlines a series of promising research avenues in organisational studies.

Originality/value

The paper provides a novel treatment of the composition of MNCs.

Details

Journal of Organizational Change Management, vol. 32 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 9 March 2020

József Poór, Allen D. Engle, Ildikó Éva Kovács, Michael J. Morley, Kinga Kerekes, Agnes Slavic, Nemanja Berber, Timea Juhász, Monica Zaharie, Katerina Legnerova, Zuzana Dvorakova, Marzena Stor, Adam Suchodolski, Zoltán Buzády and Ainur Abdrazakova

We explore the effects of three organizational variables (country of origin of the multinational company (MNC), the timing of entry into the European Union and the mode of…

Abstract

Purpose

We explore the effects of three organizational variables (country of origin of the multinational company (MNC), the timing of entry into the European Union and the mode of establishment of the MNC subsidiary unit) on the human resource management (HRM) practices being pursued by subsidiaries of large MNCs operating in selected countries in Central and Eastern Europe (CEE) and the Former Soviet Union. Furthermore, we examine whether the degree of autonomy afforded to the subsidiary over its preferred HR recipes is related to overall local unit performance.

Design/methodology/approach

We profile the HRM practices of 379 foreign owned subsidiaries located in Bulgaria, Croatia, The Czech Republic, Kazakhstan, Poland, Hungary, Russia, Romania, Serbia and Slovakia. Using descriptive statistics, we present the general characteristics of the sample and we then use bivariate statistical analysis to test our hypotheses relating to the impact of different organizational factors on the HR practice mix implemented in the MNC subsidiaries covered in our survey.

Findings

We find a significant correlation between the annual training budget, the importance of knowledge flow from headquarters (HQs) to the subsidiary and the perceived criticality of training and development and whether the subsidiary is a greenfield site or an acquisition. A correlation was also found between the national timing of EU membership (older members, newer and then candidate countries and non-EU members) and three HR practice variables: the use of expatriates, external service providers and employee relations practices.

Research limitations/implications

Our research calls attention to the issue of balancing the efficiencies of standardization with the local preferences and traditions of customization which results in more successful MNC control and ultimately higher levels of performance. It also calls attention to the challenges in pursuing research of this nature over time in the CEE region, especially given the dynamic nature of the MNC mix in each of the countries.

Practical implications

Our findings serve to reduce the information gap on foreign-owned companies in CEE and the Former Soviet Union.

Originality/value

Despite some 30 years of transition, there remains a paucity of empirical research on the HR practices of MNCs across a number of countries in the CEE region. For a decade and a half, the CEEIRT group[1] has been systematically gathering empirical evidence. The combination of the breadth (10 countries) and depth (numerous items related to MNC subsidiary relationships with corporate HQs and patterns of HR practices and roles) characterizing the ongoing research effort of the CEEIRT collaboration serves as a mechanism for augmenting the empirical base on HRM in the region.

Details

Employee Relations: The International Journal, vol. 42 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Book part
Publication date: 17 February 2017

Giuseppe Delmestri and Mara Brumana

Kostova, Roth and Dacin called in 2008 for the advancement of a theoretical conception of the multinational corporation (MNC) that takes into account both power relationships…

Abstract

Kostova, Roth and Dacin called in 2008 for the advancement of a theoretical conception of the multinational corporation (MNC) that takes into account both power relationships among actors and the structure of its internal institutional field. While micro-political scholars of MNCs have started to answer the former part of the call regarding power, the second part has not been thoroughly addressed yet. Furthermore, the agentic aspects typical of power games and the structural aspects characterizing institutional fields have not been fully combined in a multi-level perspective of MNCs so far. Leaning on Bourdieu, we suggest an answer to the pending call. We theorize the MNC as a playing field of power emerging around the issue of finding a meta-rate of conversion of the actors’ capitals constituted in national fields. We conceive such issue field in a dynamic state due to the constant entry and exit of new players (e.g. through mergers, acquisitions or divestitures). This results in the need to continuously test the validity of exchange rates. The role of the metainstitutional field level of the MNC as a global category is also discussed.

Details

Multinational Corporations and Organization Theory: Post Millennium Perspectives
Type: Book
ISBN: 978-1-78635-386-3

Keywords

Article
Publication date: 1 February 2000

Hugh McCredie and Viv Shackleton

The note explores the requisite competencies of subsidiary unit general managers in a successful multibusiness group dealing primarily in industrial goods. The authors define a…

2498

Abstract

The note explores the requisite competencies of subsidiary unit general managers in a successful multibusiness group dealing primarily in industrial goods. The authors define a competency model for the particular genre of general manager based on the literature. They then attempt to validate the model by reference to data related to outputs, skills and personality attributes which have been collected over a number of years in the context of a variety of action research projects, i.e. research undertaken for operational, rather than academic, purposes. With minor exceptions, the empirical data support the hypothesised model. The data also provide insight into the distinction between those which are threshold competencies, i.e. differentiating between poor and average performers, and those which distinguish the superior performer, as well as indications as to which competencies correlate most with overall performance indices.

Details

Personnel Review, vol. 29 no. 1
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 1 March 1996

John Thompson and Bill Richardson

Draws together a number of themes from mainstream strategy literature and synthesizes them into a new model of the comprehensively competent organization. Argues that it is a key…

4919

Abstract

Draws together a number of themes from mainstream strategy literature and synthesizes them into a new model of the comprehensively competent organization. Argues that it is a key role of the strategic leader to ensure that his/her organization possesses a wide range of generic competences (to an appropriate degree in each case) in order that the organization can develop and sustain more specific competences in learning, change management and product/service competitive competency. These “layers of competence” are illustrated in the form of an integrated web. While it is content competences which ultimately produce successful competitive outcomes, other competences in learning and change management are needed to support this. The competence implications of modern environments are discussed and, towards the end of the article, the generic competence argument is applied to the literature on business failure.

Details

Management Decision, vol. 34 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 August 1995

Richard Kustin and Robert Jones

Uses a questionnaire survey sent to CEOs of US and Japanesesubsidiaries located in North America to assess the amount of influenceexerted on such companies by corporate

2294

Abstract

Uses a questionnaire survey sent to CEOs of US and Japanese subsidiaries located in North America to assess the amount of influence exerted on such companies by corporate headquarters and the effect of this influence on leadership styles of subsidiary management. US subsidiaries are found to be insignificantly influenced by their parent companies and to practise a professional style of leadership. However, Japanese subsidiaries are found to be significantly influenced by overseas parent companies and to practise a corporate style of leadership (when the CEO is Japan‐educated) and a professional style of leadership (when the CEO is US‐educated). These findings reinforce the perceived link between leadership style and cultural upbringing and education.

Details

Leadership & Organization Development Journal, vol. 16 no. 5
Type: Research Article
ISSN: 0143-7739

Keywords

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