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Article
Publication date: 1 December 2022

Jens Gammelgaard and Rajesh Kumar

The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to…

Abstract

Purpose

The purpose of this paper is to further the understanding of how the regulatory foci of the multinational enterprises (MNE) headquarters and the subsidiary lead to internal legitimacy crises. This paper discusses how pragmatic and moral legitimacy crises affect relational social capital.

Design/methodology/approach

The paper is conceptual.

Findings

This paper highlights the importance of internal legitimacy as well as the motivational orientations of headquarters and subsidiaries for the functioning of MNEs. Internal legitimacy management is crucial for building relational social capital. This study proposes that legitimacy crises are particularly likely to occur in cases of goal incongruence between headquarters and subsidiaries. This study postulates that organizations with a promotion-oriented institutional logic are concerned by the absence of pragmatic legitimacy processes. In contrast, given their aim of protecting the status quo, prevention-oriented institutional logic MNEs are concerned about the absence of moral legitimacy.

Originality/value

To the best of the authors’ knowledge, this paper is the first to explore the relationship between regulatory focus, internal legitimacy and relational social capital.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 6 June 2019

Christoph Dörrenbächer and Jens Gammelgaard

This paper aims to address the relationship between critical and mainstream international business (IB) research and discuss the ways forward for the former.

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Abstract

Purpose

This paper aims to address the relationship between critical and mainstream international business (IB) research and discuss the ways forward for the former.

Design/methodology/approach

The paper empirically maps critical IB scholarship by analysing more than 250 academic articles published in critical perspectives on international business (cpoib) from 2005 to 2017. The paper also includes a citation analysis that uncovers how critical IB research is recognized and discussed in mainstream IB studies.

Findings

The extant critical IB research can be broken into five main topical clusters: positioning critical IB research, postcolonial IB studies, effects of international business activities, financialization and the global financial crisis and “Black IB” and corporate social responsibility. The citation analysis demonstrates that critical IB research is rarely recognized in mainstream IB academic outlets.

Originality/value

This paper is the first to empirically map critical IB research and to measure its impact on mainstream IB research. Based on these insights, as well as discussions of the more critical voices within mainstream IB studies and the debate over critical performativity in critical management studies, ways of developing critical IB research are examined.

Details

critical perspectives on international business, vol. 15 no. 2/3
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 1 February 2011

Christoph Dörrenbächer and Jens Gammelgaard

As subsidiary power has received relatively little attention in existing research, this paper aims to enhance the understanding of genuine sources of subsidiary power and…

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Abstract

Purpose

As subsidiary power has received relatively little attention in existing research, this paper aims to enhance the understanding of genuine sources of subsidiary power and how they work in headquarters‐subsidiary relationships.

Design/methodology/approach

The paper is based on a review of the relevant literature and four illustrative case studies, which are written on the basis of secondary sources. Each case was selected because it adequately represents a particular type of power. This allows for cross‐case comparisons of the strengths and sustainability of different types of power, and facilitates the exploration of the application of subsidiary power in headquarters‐subsidiary relationships.

Findings

Four genuine types of subsidiary power are identified. One of these – micro‐political bargaining power – plays a subtle but crucial role, as it is important in the enactment of the three other types of power, i.e. systemic, resource‐dependency, and institutional.

Practical implications

As headquarters have unlimited access to formal power, subsidiaries find it necessary to constantly apply micro‐political bargaining power. The empirical material suggests that the effectiveness of micro‐political bargaining power for subsidiary actors is based on two factors: information retrieval from headquarters and the leveraging of such information in issue‐selling or conflict‐handling processes.

Originality/value

The paper contributes by theoretically delineating genuine types of subsidiary power and by illustrating the strength, sustainability and interaction of these types of power in headquarters‐subsidiary relationships.

Details

Critical perspectives on international business, vol. 7 no. 1
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 1 July 2014

Xin Li and Jens Gammelgaard

This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that…

1826

Abstract

Purpose

This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that the inclusion of concepts such as corporate entrepreneurship, host country institutions and regulatory focus in an integrated framework helps to explain firm internationalization.

Design/methodology/approach

This paper is based on a review of the literature on the OLI and UIP models. In addition, it presents a conceptual model that encompasses corporate entrepreneurship, regulatory focus and institutions.

Findings

The OLI and the UIP models fail to include corporate entrepreneurship and managerial psychology in their analyses. We suggest that regulatory focus theory unifies the managerial strategic choice between position logic and opportunity logic. In addition, host country institutions affect this managerial choice with regard to internationalization.

Practical implications

Regulatory focus theory originates from managerial psychology. The model is, therefore, relevant for managers, and it shows how the outcomes and processes of corporate entrepreneurial activity should manifest themselves in managerial decision-making related to further internationalization. The strength of host country institutions also affects such decision-making.

Originality/value

This paper is the first to present the concept of regulatory focus in relation to firm internationalization. In addition, it shows that most entrepreneurship-related models of internationalization focus on international entrepreneurship and start-up firms. In contrast, this paper focuses on corporate entrepreneurship and the internationalization of established firms.

Article
Publication date: 29 March 2011

Jens Gammelgaard, Frank McDonald, Heinz Tüselmann, Christoph Dörrenbächer and Andreas Stephan

The purpose of this paper is to explore how the proportion of skilled jobs in subsidiaries is influenced by resource gaps created by subsidiary development.

2110

Abstract

Purpose

The purpose of this paper is to explore how the proportion of skilled jobs in subsidiaries is influenced by resource gaps created by subsidiary development.

Design/methodology/approach

This paper develops a range of propositions that connect the constructs of effective autonomy and organisational relationships with subsidiary employment. Propositions are built on an extensive literature review based on such approaches as the resource‐based view, transaction cost economics, network approach, and institutional theory.

Findings

The framework developed in the paper suggests that a higher proportion of employment in skilled jobs in subsidiaries is most likely in cases where subsidiary entrepreneurship, role specialization, and absorptive capacity are higher. Conversely, the proportion is likely to be lower in cases of increased institutional distance from the parent company.

Practical implications

The conceptual model can help parent company managers assess the likely effects of developments in effective autonomy and organisational relationships in their subsidiaries. Subsidiary managers can assess the possible impact of such factors as development of entrepreneurial activities, specialization within the multinational corporation supply chain and enhancement of absorptive capacity on the proportion of skilled jobs.

Originality/value

This paper is the first to describe subsidiary development from a skilled job perspective. It further develops the concept of autonomy and introduces the term “effective autonomy”.

Details

Management Research Review, vol. 34 no. 4
Type: Research Article
ISSN: 2040-8269

Keywords

Content available

Abstract

Details

Critical perspectives on international business, vol. 8 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Book part
Publication date: 17 June 2019

Olimpia Meglio and David R. King

Family businesses dominate the economic landscape and contribute to the market for corporate control across the globe, either as acquiring companies or as target. However…

Abstract

Family businesses dominate the economic landscape and contribute to the market for corporate control across the globe, either as acquiring companies or as target. However, there is still limited research investigating acquisitions by or of family firms. The authors begin to remedy this gap by providing a narrative review of extant research. Findings indicate that acquisitions in family firms are primarily regarded as a tool to solve succession problems, and not as a strategic tool to achieve growth. A greater dialog between acquisition and family business scholars can be an important means to improve theory and practice of acquisitions involving family businesses across the globe.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78973-599-4

Keywords

Book part
Publication date: 10 August 2016

Rajesh Kumar and Jens Gammelgaard

We demonstrate the role of regulatory fit and moral emotions, that is, contempt and anger, in influencing conflict resolution between the headquarters and subsidiary…

Abstract

We demonstrate the role of regulatory fit and moral emotions, that is, contempt and anger, in influencing conflict resolution between the headquarters and subsidiary boundary spanners. We develop a theoretical framework, which integrates literature on international business and headquarters-subsidiary relationships with regulatory focus, moral emotions, and conflict resolution. The chapter outlines the relationships between the regulatory focus of a headquarters’ boundary spanner, and his or her manner of engagement, conflict sensitivity, violation of code, moral emotions, and the way conflicts are resolved. The theoretical framework developed here provides a starting point for future research on bargaining processes between boundary spanners of a multinational corporation (MNC). This chapter is the first one to discuss regulatory focus, and moral emotions, in the contexts of a MNC headquarters-subsidiary relationship.

Details

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

Keywords

Book part
Publication date: 2 September 2009

Sebastian Dieng, Christoph Dörrenbächer and Jens Gammelgaard

This chapter analyses the moves global brewery companies undertake towards the distribution of decision-making authority in their multinational organization and the…

Abstract

This chapter analyses the moves global brewery companies undertake towards the distribution of decision-making authority in their multinational organization and the likelihood of newly acquired subsidiaries to influence these moves. In this consumer goods industry, brands are suggested to be the primary subsidiary-specific resource to influence these distribution processes. Empirically, this chapter explores three European acquisitions of the Dutch brewery corporation Heineken in Switzerland, Slovakia, and France. We explore whether differing brand value (regional/international, standard/premium) has had an impact on the subsidiaries’ ability to maintain a certain degree of decision-making authority after the take-over. The results of our case studies show, however, that the ownership of valuable brands may not be considered as a critical resource for subsidiaries here.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84855-781-9

Article
Publication date: 1 August 2005

Jens Gammelgaard and Thomas Ritter

Proposes that multinational companies (MNCs) establish virtual communities of practice, i.e. intranet‐based collaborative forums, and thereby benefit from a combination of

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Abstract

Purpose

Proposes that multinational companies (MNCs) establish virtual communities of practice, i.e. intranet‐based collaborative forums, and thereby benefit from a combination of codification and personification strategies in order to solve knowledge retrieval problems for the knowledge worker.

Design/methodology/approach

Based on an overview of the problems related to retrieval (i.e. individual decoding and interpretation of knowledge), a literature review on individual memory, databases, social capital and virtual communities of practice reveals a knowledge retrieval means matrix, paying respect to retrieval processes.

Findings

Virtual communities of practice are suggested as a strategy for internationally‐operating corporations that cannot develop regular face‐to‐face contact between employees, but still need some degree of personification for efficient knowledge transfers.

Research limitations/implications

Being a conceptual paper, quantitative/qualitative integration will enrich the debate further. Also, the very narrow focus on firms' information systems excludes important aspects such as knowledge creation, transfer stickiness, and application of retrieved knowledge.

Practical implications

The knowledge retrieval means matrix is a useful instrument for managers to map and further develop their organizations for better utilization of the organizational memory.

Originality/value

The combined tripartition of virtual communities, the combination of codification and personalization, and knowledge retrieval is, to the best of the authors' knowledge, presented for the first time.

Details

Journal of Knowledge Management, vol. 9 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

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