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1 – 10 of 151Alexander Kristiansen and Roger Schweizer
This paper aims to contribute to the multinational company (MNC) literature by studying the diffusion of a management idea within an MNC and its interaction with the MNC’s…
Abstract
Purpose
This paper aims to contribute to the multinational company (MNC) literature by studying the diffusion of a management idea within an MNC and its interaction with the MNC’s corporate immune system (CIS).
Design/methodology/approach
The qualitative single case study draws on evidence of how a management idea augments within an MNC and changes its development practice.
Findings
The study identifies four phases of the diffusion process and presents the interaction between the management idea and the CIS in each phase.
Practical implications
The more subsidiaries within an MNC that take the initiative to adopt a management idea, the harder will it become for the headquarters (HQ) to reject it. Thus, to ensure that changes in management practices are based on informed and, ideally, deliberate decisions, managers should critically evaluate management ideas immediately at inception.
Originality/value
The study breaks new ground by explaining how the CIS reacts to the diffusion of management ideas in MNCs.
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Alexander Kristiansen and Roger Schweizer
In the mainstream international business literature on multinational corporations (MNCs), an authoritative central headquarter (HQ) that transfers standardised practices to its…
Abstract
Purpose
In the mainstream international business literature on multinational corporations (MNCs), an authoritative central headquarter (HQ) that transfers standardised practices to its subsidiaries remains the norm. This study aims to explore how MNCs coordinate their management practices through principles.
Design/methodology/approach
The paper draws on empirical findings from a qualitative in-depth single case study based on evidence-rich qualitative data including observations from how a high-tech MNC headquartered in Sweden coordinates its development practices.
Findings
An alternative informal coordination approach (i.e. coordination by principles) is identified. Additionally, antecedents and implications of the approach are presented.
Practical implications
Coordination by Principles may facilitate the internalisation of practices and be a feasible compromise between context adaptation and traditional standardisation, particularly for MNCs with highly heterogeneous research and development operations.
Originality/value
This paper highlights the importance of acknowledging that firm practices often are based on management ideas that HQs adopt to prevent loss of legitimacy. As such, this study contributes to the scarce literature that critically questions the assumption that HQs solely transfer practices to subsidiaries to improve subsidiary efficiency and performance.
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Hany Elbardan, Donald Nordberg and Vikash Kumar Sinha
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Abstract
Purpose
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Design/methodology/approach
The study is based on the comparative analysis of internal auditing and its transformation due to ERP implementations at two case firms operating in the food sector in Egypt – one a major Egyptian multinational corporation (MNC) and the other a major domestic company (DC).
Findings
Internal auditors (IAs) at MNC saw ERP implementation as an opportunity to reconstruct the legitimacy of internal auditing work by engaging and partnering with actors involved with the ERP change. In doing so, the IAs acquired system certifications and provided line functions and external auditors with data-driven business insights. The “practical coping mechanism” adopted by the IAs led to the acceptance (and legitimacy) of their work. In contrast, IAs at DC adopted a purposeful strategy of disengaging, blaming and rejecting since they were skeptical of the top management team's (TMT's) sincerity. The “disinterestedness” led to the loss of legitimacy in the eyes of the stakeholders.
Originality/value
The article offers two contributions. First, it extends the literature by highlighting a spectrum of behavior displayed by IAs (coping with impending issues vs strategic purposefulness) during ERP-driven technological change. Second, the article contributes to the literature on legitimacy by highlighting four intertwined micro-processes – participating, socializing, learning and role-forging – that contribute to reconstructing the legitimacy of internal auditing.
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Roger Schweizer, Katarina Lagerström, Emilene Leite and Cecilia Pahlberg
The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation…
Abstract
Purpose
The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation within the MNC. In contrast to the rather scarce previous research, the authors argue that HQ needs to solve the coopetition paradox under the sway of a parenting paradox. Hence, HQ faces a dual paradox.
Design/methodology/approach
Drawing on the literature on HQ’s role during MNCs’ innovation processes, this conceptual paper revisits the previously suggested HQ measures to enable coopetition among subsidiaries. By applying a sheer ignorance perspective, the authors contribute with a more nuanced understanding of the HQ’s role in innovation activities.
Findings
The article identifies four challenges as the HQ faces a parenting paradox that hinders its ability to solve the coopetition paradox: context specificity of subsidiaries’ innovation work, normative expectations of subsidiary managers, potential opportunistic behavior of HQ manager and HQ underestimation of needed resources. The article suggests that HQ needs to become more informed and preferably even embedded in the local innovation networks of its most important subsidiaries and that coopetition should not be managed solely on an HQ level.
Originality/value
Advocating a sheer ignorance perspective, the article pioneers in discussing the role that HQ plays in managing coopetition among subsidiaries in innovation activities.
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Alexander N. Gorgijevski, Christine Holmström Lind and Katarina Lagerström
By the view of attention-building activities as “tools of power,” the authors investigate the impact of subsidiary involvement in attention-building activities on the strategic…
Abstract
Purpose
By the view of attention-building activities as “tools of power,” the authors investigate the impact of subsidiary involvement in attention-building activities on the strategic influence of subsidiaries within multinational corporations (MNCs).
Design/methodology/approach
The study is based on survey data from 110 international subsidiaries located in Sweden. Five hypotheses were tested using structural equation modeling with linear structural relations.
Findings
The study shows that organizational commitment and external scouting activities, as two attention-building activities, do not directly affect the ability of subsidiaries to gain a strategic influence in MNCs. Rather, the results provide support for the importance of headquarters’ positive attention as a mediator between such activities and subsidiary strategic influence. This implies that subsidiaries do not receive any strategic influence through these activities unless they receive explicit positive attention from the corporate headquarters.
Originality/value
This study contributes to the micro-political view of the MNC by offering insights into the impact of attention-building activities of subsidiaries as a potential source of strategic influence for MNC subsidiaries.
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Martina Fuchs and Johannes Westermeyer
The purpose of this paper is to explore the scope for action of local human resource managers, who are employed in foreign subsidiaries of multinational companies (MNCs), for…
Abstract
Purpose
The purpose of this paper is to explore the scope for action of local human resource managers, who are employed in foreign subsidiaries of multinational companies (MNCs), for implementing training activities. These managers are situated in relationships to headquarters and the local environment. Related to this is the question whether MNCs contribute to the local skill base by implementing training activities or whether they exploit the existing skill formation system.
Design/methodology/approach
This study focusses on German subsidiaries of MNCs with headquarters in the USA and the UK, France, China and Japan. The study is based on 107 expert interviews with subsidiary managers and representatives of local stakeholder organisations, such as educational organisations, chambers, economic promotion agencies and governmental bodies in Germany.
Findings
The study reveals that headquarters introduce general schemes for training. In addition to these MNC-internal trainings, local managers use their information advantage over headquarters to implement dual training activities.
Research limitations/implications
The training activities of subsidiaries are dependent on the institutional settings of the host country.
Practical implications
Albeit dual training activities are laborious and tie the local managers down for the medium and long term, the future need of the subsidiary for adequately skilled workforce prompts local managers’ engagement in implementing dual training activities.
Social implications
Subsidiaries contribute to the local skill base and do not act in a free-rider position, at least in the German variety of capitalism.
Originality/value
The study deepens insights on distanced relations within and how subsidiaries generate scope for action by using this kind of relationships.
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Markus Ellmer, Astrid Reichel and Sebastian T. Naderer
The purpose of this paper is to generate insights into how multinational companies (MNCs) promote global mobility in their Employer Branding (EB) messages on Facebook.
Abstract
Purpose
The purpose of this paper is to generate insights into how multinational companies (MNCs) promote global mobility in their Employer Branding (EB) messages on Facebook.
Design/methodology/approach
The authors analyzed 13.340 EB messages found on the Facebook career pages of 30 major MNCs (10 of each in the US, UK and Germany) drawing on a methodological approach combining Grounded Theory and text-mining.
Findings
Building on the perspective of psychological contracts as sensitizing concept, the analysis of the overall sample reveals a range of core themes in EB messages across all MNCs studied. With regards to global mobility, MNCs emphasize relational, i.e. socio-emotional, contents, particularly, highlighting opportunities of experience and personal development. While global mobility is an overall marginal theme, German MNCs extensively promote global mobility, whereas US- and UK-based MNCs do not explicitly make it a subject of their messages. The findings are discussed in the light of institutional theory.
Originality/value
Despite mega-trend, little is known about social media EB, especially when it comes to the contents that MNCs communicate to (potential) employees. Applying an innovative methodological approach, the authors offer insights into these contents. Discussing the findings in the light of institutional theory, it is concluded that promoting global mobility in socio-emotional terms seems of high importance to reduce uncertainties associated with living and working abroad. This might help firms to hire internationally mobile employees, especially in countries where job mobility is generally low.
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Javier Aguilera-Caracuel, Jaime Guerrero-Villegas and Encarnación García-Sánchez
The purpose of this paper is to use stakeholder theory as the theoretical reference framework to study the influence of internationalization (geographic international…
Abstract
Purpose
The purpose of this paper is to use stakeholder theory as the theoretical reference framework to study the influence of internationalization (geographic international diversification) and social performance on multinational companies’ (MNCs) reputation.
Design/methodology/approach
The authors confirm the research hypotheses using a sample of 113 US MNCs in the chemical, energy and industrial machinery sectors during the period 2005-2010.
Findings
This study contributes to the literature in three ways. First, it incorporates literature on internationalization to study the possible connection between geographic international diversification and social performance in MNCs. Second, it sheds light on the debate between corporate social responsibility (CSR) and the reputation of MNCs in a very diverse transnational context in which MNCs must meet the needs of stakeholders at both local and global levels. Third, it incorporates the mediating role of social performance in the relationship between geographic international diversification and the firm’s reputation.
Originality/value
Prior studies have hardly analyzed this relationship, which becomes especially relevant for MNCs, since their implementation of advanced CSR practices in the different markets in which they operate will gain them a good reputation, not only in specific local contexts but also globally, benefitting the organization as a whole and enabling it to gain internal consistency (improvement in internal efficiency), transparency and legitimacy.
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Sarah Marschlich and Diana Ingenhoff
For corporate communications, it is crucial to know how news media outlets report and frame the sociopolitical activities of multinational corporations (MNCs), including their…
Abstract
Purpose
For corporate communications, it is crucial to know how news media outlets report and frame the sociopolitical activities of multinational corporations (MNCs), including their corporate diplomacy, that affect perceptions of their legitimacy. Therefore, this study aims to identify how local news media frame corporate diplomacy in a host country and, in turn, benefit the media legitimacy of MNCs.
Design/methodology/approach
To identify media frames in the host country, a quantitative content analysis involving factor and cluster analyses of 385 articles published in newspapers in the United Arab Emirates from 2014 to 2019 addressing the corporate diplomacy of large European MNCs operating in the country was conducted.
Findings
This study identified three media frames, two of which establish moral and pragmatic media legitimacy. Results suggest that media legitimacy grows when news media emphasise institutional relationships between MNCs and local, established organisations and corporate diplomacy's benefits for society.
Practical implications
Findings provide insights into how corporate communications can contribute to legitimacy building by emphasising corporations' relationships with institutional actors in host countries and the benefits of corporate activities for local communities.
Originality/value
To the best of the authors’ knowledge, this study was the first in corporate communications to empirically investigate news media's role in corporate diplomacy and how media frames contribute to the media legitimacy of MNCs at the moral, pragmatic, regulative and cognitive levels.
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Jin Suk Park, Jae Yoon Chang and Taehun Lee
This study aims to find how the turnover of host country nationals (HCNs) would be affected by the knowledge transfer from a headquarter to a subsidiary. Knowledge transfer in a…
Abstract
Purpose
This study aims to find how the turnover of host country nationals (HCNs) would be affected by the knowledge transfer from a headquarter to a subsidiary. Knowledge transfer in a multinational corporation (MNC) has been discussed as a critical factor in the MNC’s success. Because HCNs are essential to synergizing with a new knowledge inflow during this knowledge transfer process, their turnover entails negative consequences such as knowledge loss.
Design/methodology/approach
This paper empirically tests the unbalance between knowledge received (KR) and absorptive capacity (AC) as the most critical organizational predictor by using the secondary longitudinal records and survey data of 4,915 employees. Multilevel survival analysis is used to calculate the individuals’ turnover hazard.
Findings
While finding that the primary effect of transferred knowledge is to reduce turnover, the study demonstrates the unbalance between a subsidiary’s AC and KR increases the likelihood of HCNs’ turnover within the organization. The authors also recognize the possibility of nonlinear trends of KR and AC on the turnover hazard.
Originality/value
The authors answer how knowledge transfer shapes a subsidiary’s work environment to prevent or increase turnover, which has been barely examined for HCNs who comprise the crucial demographic group in knowledge transfer. To enhance the originality further, this study empirically observes the actual turnover of HCNs with a conceptually comprehensive view incorporating both learning and political approaches.
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