This article develops the concept of internal subsidiary embeddedness as the canvas within which subsidiary strategy takes place. Developing an inductive model, we identify three hierarchical levels of embeddedness. The first level is operational embeddedness, which relates to interlocking day-to-day relations. The second level is capability embeddedness, which concerns the development of competitive capabilities for the multinational as a whole. The third level is strategic embeddedness, which concerns a subsidiary's participation in a multinational corporation's strategy setting. We derived our concept of embeddedness from an in-depth case study. Embeddedness is not merely an outcome of the institutional setting in which a subsidiary is situated, but is a resource a subsidiary can manage by means of manipulating dependencies or exerting influence over the allocation of critical resources. A subsidiary can modify its embeddedness to change its strategic restraints. Therefore, the development of subsidiary embeddedness becomes an integral part of subsidiary strategy. Copyright (c) Blackwell Publishing Ltd 2008.
This paper inductively derives a model that develops the concept of subsidiary embeddedness as the framework within which subsidiary strategy can take place. Our model identifies three hierarchical levels of embeddedness. Operational embeddedness relates to interlocking day-today relations. Capability embeddedness deals with the development of competitive capabilities for the multinational as a whole. Strategic embeddedness deals with subsidiary participation in the MNC strategy setting. We deem these three types of embeddedness as ways to develop subsidiary strategic alternatives. As such, different types of subsidiary embeddedness imply different subsidiary roles. Embeddedness, as we inductively concluded from a revealing case study, is not merely an outcome of institutional setting, but a resource which a subsidiary can manage by means of manipulating dependencies or exerting influence over the allocation of critical resources. A subsidiary can modify its embeddedness to change its strategic restraints. Therefore, the development of subsidiary embeddedness becomes an integral part of subsidiary strategy.
Precepts from servant leadership theory are used to tests a model that links servant leadership with interpersonal conflict with the supervisor, ethical climate, and organizational outcomes. Study findings show that servant leadership is conducive to lower levels of interpersonal conflict with the supervisor and higher ethical climate perceptions. Conflict with the supervisor affects work-family conflict and felt stress, eventually impacting job satisfaction and turnover intention. The model was tested with survey responses from 85 frontline employees working for an airline in South America.Research findings demonstrate that servant leadership helps create an environment conducive to employee wellbeing. Employees who think that their supervisor engages in servant leadership behaviors are less likely to participate in conflict with their supervisor which is shown to affect work-family conflict and felt stress. Servant leadership can thus be beneficial for the employee and her or his family. Reducing work-family conflict is not only the right thing to do but is also beneficial to the firm due to its impact on job satisfaction, felt stress, and eventually turnover. Results linking supervisory conflict with work-family conflict also add credence to the spillover hypotheses which posits that strain resulting from a person's job can cross work boundaries and affect the employee-family relationships. The indirect effect of servant leadership on workfamily conflict brings support to the notion that the benefits of servant leadership go beyond what happens inside the organization as it positively affects other organizational stakeholders. Study findings have important implications for theory development as proponents of servant leadership have recently proposed that the positive impact of servant leadership occurs through high quality leader-follower relationships.References available upon request 5
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