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Research Summary: This paper emphasizes the social and political dimensions of subsidiary influence in strategically repositioning the subsidiary's mandate. The specific skills subsidiary actors deploy in attempting to influence corporate headquarters have largely been neglected in existing literature. Drawing from a micro‐political perspective, we provide a more nuanced, fine‐grained understanding of subsidiary influence by illuminating how influence is augmented and enriched through the concomitant effects of subsidiary actors' social and political skills. Using a multiple case study analysis and drawing on qualitative interviews, we illustrate how subsidiary actors' social skills are used to continuously create, maintain, and develop spaces of social engagement with corporate decision makers, whereas political skill involves the ability to leverage social spaces by developing specific influence tactics such as targeting, showcasing, and framing. Managerial Summary: Subsidiaries of multinational companies play an increasingly dominant role in the global business environment. The role of the individual subsidiary actor in influencing corporate management is crucial to the development of the subsidiary mandate. Despite this, very little is known about the microlevel skills individual subsidiary actors draw upon to influence the development of their mandates. This article explores how subsidiary actors channel key social and political skills in strategically repositioning their mandates within the multinational enterprise. We find that subsidiary actors may use their social skills to establish increased interaction and communication with key corporate decision makers, whereas political skill is used to develop a variety of influence tactics.

The increased research focus on the networked perspective of the multinational enterprise (MNE) reflects a greater delegation of responsibility from corporate headquarters (CHQ) to subsidiary and intermediary units such as regional headquarters (RHQ). This shift has increased the intensity of political interactions between key actors within the MNE. Despite the recent rise in studies on the micro‐political perspective of the MNE to date, little empirical work has explored this issue in the context of the CHQ–RHQ relationship. Drawing insights from agency theory and micro‐politics, the authors focus on the context in which RHQs develop micro‐political strategies in order to manage the flow and exchange of knowledge with CHQ. They show how RHQ may exhibit a ‘dual agency’ role when dealing with CHQ, in that it is characterized as a principal and agent, each requiring different micro‐political knowledge strategies. As a principal, RHQ will develop micro‐political knowledge strategies to increase alignment with CHQ. As an agent, RHQ develops micro‐political knowledge strategies to pursue its self‐interests. Having identified different RHQ agency roles, the authors develop a conceptual model that outlines how alignment and self‐interest‐seeking behaviours from RHQ are manifest through different micro‐political knowledge strategies in its agency relationship with CHQ.

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