In this paper we contribute to knowledge of power and politics in international business by developing the understanding of the role of discourse and sensemaking in the subsidiary-headquarters relationship. Based on an ethnographic action research study in a British subsidiary of an American multinational corporation, we conduct an ethnomethodologically informed discourse analysis of the accounts, stories and metaphors through which power and politics in the subsidiary-headquarters relationship were created as social facts. We then broaden the analytic frame to trace longitudinally how these facts led the subsidiary managers to hide, dilute or restrict their 'local sense' from the headquarters, including their knowledge of the local market and their preferred strategic direction for the firm: a process we term sense-censoring. We reveal how the subsidiary used power and politics as reasoning procedures to decide against pursuing a preferred course of action, despite a strongly held belief to the contrary, due to anticipated reactions or counter-actions, thereby transforming potential strategic action into inaction. Sense-censoring is significant for international business management, we propose, because it impacts upon knowledge flows, innovation diffusion and organizational learning. We conclude by outlining the implications of systems of sense-censoring and strategic inaction for the management of global-local relations in multinational corporations.
Categorization is known to play an important role in organizations because categories ‘frame’ situations in particular ways, informing managerial sensemaking and enabling managerial intervention. In this article, we advance existing work by examining the role of categorization practices in discursive leadership during periods of strategic change. Drawing on data from an ethnographic action research study of a strategic change initiative in a multi-national corporation, we use membership categorization analysis to develop a framework for studying ‘category predicates’ − defined as the stock of organizational knowledge and associated reasoning procedures concerning the kinds of activities, attributes, rights, responsibilities, expectations, and so on, that are ‘tied’ or ‘bound’ to organizational categories. Our analysis shows that discursive leadership enabled a radical shift in sensemaking about organizational structure categories through a process of ‘frame-breaking’ and ‘re-framing’. In so doing, the leader co-constructed a ‘definition of the situation’ that built a compelling vision and concrete plan for strategic change. We go on to trace the organizational consequences and material outcomes of this shift in sensemaking for the company in question. We conclude by arguing that ‘category predication work’ comprises a key leadership competence and plays an important role in organizational and strategic change processes.
a b s t r a c tThe urgent need to combat climate change is now globally accepted. Collective action at a global level is the key ability to respond to the threat of climate change. No individual company alone has the necessary resources and capabilities to tackle the unprecedented challenge of climate change. Companies need to engage in give-and-take exchange relationships with other companies to address climate change. Research on how companies interact with each of their counterparts to respond to the challenge of climate change is limited. Existing research on climate raises questions about 1) how companies interact in response to climate change and 2) why companies fail to craft collective responses to climate change? In an attempt to shed light on these questions, we use the network approach as a theoretical perspective to account for the ever increasing connectivity and interdependence in the business landscape and theorize on the consequences these phenomena may have for the study. The study is based upon an empirical investigation of public-private networks in Germany. Findings indicate that companies fail to collectively respond to climate change due to the multiplicity of interests of actors involved in the network which is aggravated by 1) economic reasoning; 2) weak actor bonds; and 3) differing perceptions of the rules of the game. As such, the present study contributes to our understanding of collective responses to the ever evolving challenge of climate change.
The prevailing understanding of collusive B2B networks is primarily based on the theories of industrial economists and organizational criminologists. 'Successful' collusive industrial networks (such as price-fixing cartels) have been seen to endure due to formal managerial structures of coordination and control. In this paper, we seek to transcend and challenge the understanding of these illegal forms of co-opetition by drawing on evidence from an in-depth examination of four price-fixing cartels that were facilitated chiefly by marketers. Our contribution introduces the notion of 'shadow networks' (networks where although attempts are made to ensure secrecy, multilateral modes of network structure dominate akin to 'normal' managerial endeavours such as joint ventures) and 'dark networks' (networks which appear more opaque and secretive through the adoption of bilateral modes of network structure and limited bureaucracy) to illustrate the types of collusive network forms that may exist. In addition, this allows us to build a deeper understanding of collusive network forms and related inter-firm interaction for an industrial marketing audience. We provide implications for marketing practice, theory, and policy. Specifically, we outline how organizations and the marketing function can perform self-administered antitrust audits in order to help avoid breaches of antitrust. Further, we consider the importance of the two forms of collusive inter-firm networks uncovered where marketers have attempted to render these secret from antitrust agencies, introducing a relatively new line of inquiry to the industrial marketing literature.
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This paper addresses the methodological issue of how researchers gain access and build trust in order to conduct research in organizations. It focuses, in particular, on the role of interests (what actors want or what they stand to gain or lose) in the researchrelationship. The analysis shows how notions of interests, stake and motive were managed during an action research study in a UK subsidiary of a multinational corporation. The study uses an approach to discourse analysis inspired by the field of discursive psychology to identify four discursive devices: stake inoculation; stake confession; stake attribution; and stake construction. The paper contributes to the understanding of research methodology by identifying the importance of interest-talk in the process of doing management research.
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