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Book part
Publication date: 10 August 2016

Kazuhiro Asakawa and Tomomine Aoki

We investigate the extent to which headquarters’ perceived knowledge about overseas R&D subsidiaries influences the level of control over them. We confirm that…

Abstract

We investigate the extent to which headquarters’ perceived knowledge about overseas R&D subsidiaries influences the level of control over them. We confirm that headquarters’ knowledge about its overseas R&D subsidiaries lowers the level of control over them. Surprisingly, however, granting legitimacy to R&D subsidiaries does not necessarily lead to a reduction in headquarters’ control. In addition, R&D subsidiaries’ legitimacy does not influence the effect of headquarters’ knowledge about them on the level of control. Although headquarters’ knowledge about R&D subsidiaries tends to grant them legitimacy, the effect of that legitimacy seems rather minimal. These findings imply that headquarters are reassured when it reduces its control over the subsidiaries based on updated knowledge about their current situations rather than on an already-established positive image of those subsidiaries.

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

Keywords

Article
Publication date: 24 August 2021

Muhammad Shujaat Mubarik, Miao Miao, Muhammad Faraz Mubarak, Syed Imran Zaman, Syed Hasnain Alam Kazmi and Navaz Naghavi

The primary objective of this study is to investigate the impact of a host country's corruption on the autonomy of a foreign subsidiary from a country with lower tolerance…

Abstract

Purpose

The primary objective of this study is to investigate the impact of a host country's corruption on the autonomy of a foreign subsidiary from a country with lower tolerance for corruption. In doing so, the study examines the moderating role of subsidiary-headquarters communication and multinational corporation's (MNC's) prior international experience in countries with a higher tolerance for corruption.

Design/methodology/approach

The data were collected from 182 foreign subsidiaries of 57 Malaysian MNCs operating in 16 host countries. The study employed ordinary least square (OLS) using Stata16.1 to analyze the modeled relationships.

Findings

The findings of this study reveal a significant positive association between the extent of corruption in the host country and the subsidiary's autonomy. The findings illustrate that an MNC's prior experience in the country with an increased tolerance for corruption does not moderate the association between corruption and subsidiary autonomy. However, the findings also confirm that the extent of headquarters-subsidiary communication negatively moderates the association between corruption and subsidiary autonomy.

Originality/value

The study uses unique data collected from Malaysian MNCs. Furthermore, the study contributes to the literature by bringing forth subsidiary autonomy as a counter strategy to potential risks that can arise due to weak institutions and widespread corruption in a host country.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 10 August 2016

Gabriela Gutierrez-Huerter O, Stefan Gold, Jeremy Moon and Wendy Chapple

This chapter investigates the antecedents to the development of the three components of subsidiaries’ absorptive capacity (ACAP): recognition, assimilation and application…

Abstract

This chapter investigates the antecedents to the development of the three components of subsidiaries’ absorptive capacity (ACAP): recognition, assimilation and application of transferred knowledge in the context of the vertical flow of social and environmental accounting and reporting (SEAR) knowledge from the HQ to acquired subsidiaries. Our analysis is based on an embedded multiple case study of a UK-based MNC, informed by 44 semi-structured interviews and capitalising on agency theory and socialisation theory. Prior knowledge is not a sufficient explanation to the development of ACAP but it is also dependent on organisational mechanisms that will trigger the learning processes. Depending on the nature and degree of the social, control and integration mechanisms, the effects of prior stocks of knowledge on ACAP may vary. Our propositions only hold for one direction of knowledge transfer. The study is based on an embedded multiple case study in one sector which restricts its generalisation. It excludes the specific relationships between the three ACAP learning processes and the existence of feedback loops. Our findings suggest that the HQ’s mix of social, control and integration mechanisms should account for initial stocks of SEAR knowledge. The contribution lies in uncovering the interaction between heterogeneous levels of prior knowledge and organisational mechanisms deployed by the HQ fostering ACAP. We address emerging issues regarding the reification of the ACAP concept and highlight the potential of agency theory for informing studies on HQ-subsidiary relations.

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

Keywords

Abstract

Details

Multinational Enterprises and Terrorism
Type: Book
ISBN: 978-1-83867-585-1

Article
Publication date: 5 May 2020

Roger Schweizer, Katarina Lagerström and Johan Jakobsson

The article aims to explain how the drivers of subsidiary evolution influence a multinational company's (MNC) research and development (R&D) subsidiary's evolution over time.

Abstract

Purpose

The article aims to explain how the drivers of subsidiary evolution influence a multinational company's (MNC) research and development (R&D) subsidiary's evolution over time.

Design/methodology/approach

The article draws on insights from a longitudinal comparative case study of three Swedish MNCs' Indian R&D units.

Findings

The study shows that the evolution of R&D units is a triangular showdown among headquarter assignments, local market constraints, and opportunities, and that subsidiary choice is an important driver of both mandated extension and stagnation. We summarize our findings in various propositions that emphasize different drivers over time and that highlight the strong impact of a subsidiary's understanding of the corporate immune system on the evolution of that subsidiary's R&D mandate.

Research limitations/implications

Drawing on the common limitations of a case study approach, further research is needed to test the suggested propositions with larger samples, ideally with subsidiaries in other emerging and developed markets.

Practical implications

The study illustrates the risks involved for subsidiary managers when pushing an R&D mandate-related initiative too far and provoking the corporate immune system. For headquarters management, the study highlights the importance of understanding that the development of R&D competence and capability at a subsidiary cannot be guided solely by headquarter assignments and local market characteristics; rather, the subsidiary's initiatives also need to be considered.

Originality/value

The study contributes to the literature on R&D internationalization by showing how the drivers of subsidiary evolution influence a subsidiary's R&D mandates over time and that subsidiary choice is an important driver of both mandated extension and stagnation.

Details

Cross Cultural & Strategic Management, vol. 27 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 21 February 2018

Martijn Pieter van der Steen and Sandra Tillema

The purpose of this paper is to address the impact of a multidivisional structure on the implementation of lean manufacturing. It investigates how the controls employed by…

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Abstract

Purpose

The purpose of this paper is to address the impact of a multidivisional structure on the implementation of lean manufacturing. It investigates how the controls employed by the corporate level impact the local implementation of lean manufacturing.

Design/methodology/approach

The paper reports on case studies in three subsidiaries in different multidivisional organisations.

Findings

The paper finds that lean manufacturing can be severely constrained by the accounting-based controls which are commonly in place in a multidivisional structure. Depending on the degree of centralisation, subsidiaries may be restricted to implementing lean tools in a fragmented way, rather than acting according to a coherent set of principles.

Practical implications

Companies may have to accept that being part of a multidivisional organisation can imply that their lean implementation is more gradual and piecemeal than they prefer. The paper proposes several ways to mitigate the constraints that may arise from incompatibilities between accounting-based controls and lean controls.

Originality/value

This study contributes to the literature about external constraints on production innovations, such as lean manufacturing. It highlights how the organisational context creates local conditions that may be detrimental to the implementation of lean manufacturing.

Details

International Journal of Operations & Production Management, vol. 38 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

Abstract

Purpose

In this chapter, we raise awareness of the larger network in which multiteam systems (MTSs) are situated. We posit that in the complex operations conducted by military units, MTSs are not isolated entities, but rather exist in exponentially complex systems that include additional challenges for both research and practice.

Approach

An operational example involving an Army Brigade Combat Team Headquarters is presented to explain the details of the exponentially complex MTSs inherent in military operations, raise awareness about challenges that plague successful mission accomplishment, and discuss the way forward for research and practice.

Findings

The Army Brigade Combat Team Headquarters is characterized as a traditional MTS, embedded in a system of hierarchical MTSs, further embedded within a parallel structure of MTSs. Challenges inherent in these organizational structures provide direction for research and practice to address the exponentially complex meta-systems that are prevalent throughout the military.

Value

While researchers have begun to address teams existing in larger networks, or MTSs (Mathieu, Marks, & Zaccaro, 2001), much of the existing research is based on small or isolated systems. As a result, our understanding of the meta-systems in which many of these MTSs exist is limited. This chapter provides concrete examples of an exponentially complex MTS within a military environment and highlights challenges to be addressed in both research and practice.

Details

Pushing the Boundaries: Multiteam Systems in Research and Practice
Type: Book
ISBN: 978-1-78350-313-1

Keywords

Article
Publication date: 1 February 2003

Gustavo A.C. Guzmán

This paper examines a new model of production in a developing nation, the Electronics Contract Manufacturing Industry. It explores issues related to manufacturing…

Abstract

This paper examines a new model of production in a developing nation, the Electronics Contract Manufacturing Industry. It explores issues related to manufacturing management, competence building, organisation and implementation of manufacturing best practice. It argues that the understanding of both contextual institutional factors and soft operational issues is crucial for implementing manufacturing practices that support competitiveness building.

Details

Integrated Manufacturing Systems, vol. 14 no. 1
Type: Research Article
ISSN: 0957-6061

Keywords

Article
Publication date: 1 March 1986

John Saunders and Ton Hong Chong

Intercultural trade always requires special efforts. The authors of this article lay down some guidelines for Western dealings with companies in China and Japan, and bring…

Abstract

Intercultural trade always requires special efforts. The authors of this article lay down some guidelines for Western dealings with companies in China and Japan, and bring out points to note for both sides.

Details

Management Decision, vol. 24 no. 3
Type: Research Article
ISSN: 0025-1747

Case study
Publication date: 26 September 2012

Joakim Kembro

Humanitarian logistics, aid response.

Abstract

Subject area

Humanitarian logistics, aid response.

Study level/applicability

Master/advanced level; courses in: humanitarian logistics; port operations and management; supply chain management and logistics.

Case overview

Recently, the humanitarian organization Global Food Aid (GFA) has received criticism for slow response to the on-going drought in East Africa. One of the reasons is the long lead times to transport and distribute food. Therefore, GFA has launched a project called “Strategic stock” where food will be pre-positioned in strategic locations around the world. Because of its importance as a gateway for East Africa, the Port of Mombasa has been selected as the pilot project. Headquarters of GFA has engaged a team of logistics and warehouse experts to plan, run and evaluate the pilot project in Mombasa.

Expected learning outcomes

Through this case, the students (who take on the role of the experts) will gain knowledge in a wide range of areas. First, they will gain a thorough insight to coordinating a port operation in one of the major ports in Africa. Second, the case increases the understanding of working with logistics in a humanitarian aid context. Third, the students will learn how to work with logistics both on a strategic level (planning the implementation of strategic stock) and on an operational level (handling the different events that occur throughout the case). There is also a learning element related to risk management.

Supplementary materials

Teaching notes are available.

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