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This chapter presents an in-depth inductive analysis of a parent organization and the network of subsidiaries that it has created. The authors identify the significance of organizational processes label as “disciplining entrepreneurialism.” These are activities that encourage entrepreneurial individuals to propose and lead new businesses while also promoting strong identification with the parent firm. The authors explore the emergence of this phenomenon through an examination of subsidiary–headquarter relations. While conventional conceptualization of inter-organizational collaboration has tended to exclude ­subsidiary–headquarter network relationships, we use the Systems of Exchange framework (Biggart & Delbridge, 2004) to categorize disciplined entrepreneurship alongside market, hierarchy, and network relations. Disciplining entrepreneurialism is not experienced as either market nor hierarchy by the individual members in the subsidiaries, and these subsidiaries move between the two in ways that are not adequately captured as a network either. This disciplining entrepreneurship approach can thus be contrasted with networks as well as differentiated from both markets and hierarchies. Entrepreneurship is encouraged while maintaining commitment to the overarching enterprise of the parent company.

The purpose of this paper is to provide empirical evidence regarding the springboard regionalization strategy implemented by multinationals entering Latin America and the organizational networks developed to serve this end.

Using the organizational network approach, a typology is developed to explain the Springboard network. Quantitative analysis is used, in the form of logistic binary regression, to study these networks composition.

From a sample of 154 subsidiaries extracted from the AMADEUS intelligent database, three categories for multinational’s networks are created, with the Spanish subsidiary acting as the leader: strategic centers (SCs), administrative centers (ACs) and regional headquaters (RHQs). Findings provide evidence of cultural features, industry behavior and the multinational’s size and entry mode influence these networks organization.

It is proposed that culture and historical ties have evolved together and management scholars should be aware of this phenomenon. Specific limitation that this study exhibits is the data provided by AMADEUS and the fact that R&D information for both the Spanish and the Latin American subsidiary were not available.

Staffing composition and expatriate corporate policy should consider the springboard effect to manage springboard networks.

Industries and authorities in all countries involved should be aware of their role in MNC strategies for regional expansion.

It is argued that a network of subsidiaries within the multinational can participation in the springboard behavior, which is determined by the culture that the multinational originates from, as well as the Spanish culture, creating a particular type of leadership.

Purpose – The purpose of this paper is to analyse knowledge transfers in transnational corporations. Design/methodology/approach – The paper develops a conceptual framework for the analysis of knowledge flow transfers in transnationals. Based on this theoretical framework, the paper propose's research hypotheses and builds a causal model that links the constructs of the model (knowledge stickiness factors, internal/external knowledge flow transfer, and competitive advantage). Findings – The competitive advantage of a transnational organisation lies to a great extent in its ability to identify and transfer strategic knowledge between its geographically dispersed and diverse locations. Transnational corporations face major challenges in the current competitive environment. The transnational corporation must learn how to exploit its specific resources – either acquired in the country of origin or in foreign markets. It cannot forget that the source of a long‐term competitive advantage is focused on the variety of skills and diversity of knowledge. Transnationals can benefit from international fertilisation, because knowledge exploration and exploitation activities are closely related with the concepts of synergies, interdependences and interactive organisational learning. Practical implications – The paper proposes a causal model that links strategic variables in the knowledge flow transfer to the achievement of a competitive advantage for the firm. As a further avenue for research, there are plans to test this model with a sample of USA pharmaceutical companies with subsidiaries abroad. Originality/value – The paper provides great value both for academics and executives interested in the analysis of the complexity of knowledge transfer in transnational corporations.

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.

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.

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.

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.

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

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.

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.

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.

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.

Advocating a sheer ignorance perspective, the article pioneers in discussing the role that HQ plays in managing coopetition among subsidiaries in innovation activities.

The purpose of this paper is to explore the interdependency of corporate architecture and organisation cultural change. Corporate headquarters have become symbols of corporate change ambitions to endure cultural value sets. The paper seeks to contribute to the growing interest in the re‐materialization of organisational change.

The study of spatial setting give rise to new methodological questions. There is a hermeneutic relationship between elements of spatial design and the meaning‐making of their designers and users. The reading of built space and other physical arrangements requires interpretative methods. Methods such as interviewing, observation and participant observation have been used to study three headquarter buildings of a Dutch telecom operator in a longitudinal study (1995‐2007).

It is argued in the paper that the organisation's spatial position in relation to the Dutch Government buildings is a reflection of the privatisation process. During this change process three symbolic and aesthetic different headquarters have been designed. Each of the headquarters is an embodiment of the change ambitions in the different phases. The building is a physical embodiment of the organisational change history.

The paper stresses the symbolic richness of physical arrangements, artefacts and aesthetic dimensions and the embodiment of cultural change processes. Given the large interest of organisations in architectural design to support organisational change the interdependency, change managers should be included in the architectural design process at an early stage.

Although many scholars ask for a spatial turn in organisation studies, not many empirical studies have been done. This paper tries to fill in this gap.