Dual values-based organizational identification in MNC subsidiaries: A multilevel study

Abstract

Dual organizational identification -with both the whole corporation and the local subsidiary -is considered valuable for subsidiary employees, international assignees, and multinational corporations (MNCs). While extant research has examined antecedents of separate targets of identification, it has not fully addressed the challenge of identifying factors capable of supporting both simultaneously. This study examines the influence of individual-and organizational-level factors on the dual values-based identification of foreign subsidiary employees. Drawing on acculturation and organizational socialization theory, we test hypotheses on multilevel data from 793 managers and professionals in 90 foreign subsidiaries belonging to 11 Nordic MNCs. The results show that dual values-based identification is associated with acculturation and first-hand contact at the individual level, and a supportive social context for affective learning at the organizational level. Through its emphasis on higher-order elements that connect different parts of the MNC, rather than those that lead to the formation of in-groups and out-groups, the values-based approach to identification contributes to our understanding of dual identification in MNC subsidiaries, and represents a more positive treatment of cultural diversity. The findings have heightened practical relevance given the emphasis individuals are placing on values congruence in career choices and MNC efforts at instilling shared values.

Developing international social capital: The role of communities of practice and clustering

“…Greater numbers of expatriates performing these kinds of boundary-spanning roles will support the dual role that subsidiaries play within their organizations and the local host contexts. Smale et al (2015) found that dual values-based identification (with both the whole corporation and the local subsidiary) is associated with acculturation and first-hand contact at the individual level, and a supportive social context for affective learning at the organizational level. Even more, if those boundary spanners have both cultural and language skills, they will perform more functions and be more valuable than those with only cultural skills (Barner-Rasmussen et al, 2014).…”

Global Talent Management and Performance in Multinational Enterprises: A Multilevel Perspective

“…Global development and networking programmes, mentoring programmes, and so forth are likely to increase this talent pool's parent-firm human capital and identification with HQ. Key mechanisms underpinning this development include acculturation through contact with other members of the global talent pool and through global development programmes, both of which create opportunities for cross-unit social interaction (Smale et al, 2015). In such contexts, effective deployment of GTM routines is likely to increase human-capital emergence.…”

Beyond the water cooler: using socialization to understand use and impact of networking services on collaboration in a business incubator

“…To socialize they need to be able to make sense of their new environment and will seek information about why people behave as they do. Socialization is of critical importance to any organization “because it helps to ensure the continuity of core values, and in terms of identification provides employees with a frame of reference when responding to events at work, interacting with other colleagues…, making sense of what they do and who they are…, and what the organization is about….” (Smale et al, ).…”

“…This particular socialization mechanism facilitates the development of interpersonal ties inside the BI, which in turn can be expected to enhance the communication between parties and knowledge transfer (Tötterman and Sten, ). From a knowledge‐sharing perspective, the underlying rational is that the more tenants share the BI's vision, values, and goals, the more likely they are to exchange knowledge, share resources, and ultimately, cooperate (e.g., Smale et al, , pp. 447–448).…”

“…Shared cognitive ground refers to shared interpretations and systems of meaning among parties (Nahapiet and Ghoshal, 1998), or in other words, the extent to which tenants understand each other's goals and ambitions, behavioral norms, and professional languages (Tsai and Ghoshal, 1998). Shared cognitive ground facilitates meaningful communication and knowledge transfer (Smale et al, 2015). As a result, tenants will not only identify more with the BI's mission and values but also have better access to knowledge of the internal BI network than counterparts that participate less in BI informal H2: A tenant's participation in BI informal networking activities enhances the positive relationship between length of tenant BI tenure and its level of intra-BI collaboration.…”