Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda

Meyer, Klaus E.; Li, Chengguang; Schotter, Andreas

doi:10.1057/s41267-020-00318-w

Cited by 218 publications

(222 citation statements)

References 310 publications

(362 reference statements)

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“…In the same way, once firms enter international markets, they need to constantly search for strategies to serve those markets through their international subsidiaries, which, more often than not, develop their own goals and aspirations around what constitutes best performance. Understanding the dynamics of subsidiary management through new theoretical lenses such as behavioral theories, has recently been placed at the forefront of the IB research agenda (see Meyer, Li, & Schotter, 2020).…”

Section: Discussionmentioning

confidence: 99%

Back to basics: Behavioral theory and internationalization

2020

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International business (IB) scholars’ over-reliance on a select few theories leaves our understanding of firm internationalization incomplete. The behavioral theory of the firm (BTF) can offer new insights and can be used to model a broad range of firm actions. We focus on the three basic BTF components: problemistic search, learning by doing, and vicarious learning. These components help us understand why firm behaviors are more dynamic and heterogeneous than other theories allow. BTF, with its emphasis on how firms assess performance according to aspiration levels, selectively learn and update routines, and selectively incorporate the learning of others, is better suited to examine the diversity and change increasingly observed in internationalization decisions. We explain why scholars should move beyond “dynamizing” static theories and show BTF’s applicability to behaviors involving change such as multi-mode market entries and market re-entries. BTF also helps examine the decision to internationalize in the first place, nascent firm internationalization, location choices, international market adaptation, and headquarter–subsidiary relationships. We encourage IB scholars to use theories that can handle the complexity increasingly associated with modern firm growth, and propose BTF as a promising starting point.

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Section: Discussionmentioning

confidence: 99%

Back to basics: Behavioral theory and internationalization

2020

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“…Gaur and Kumar 2018; Meyer et al . 2020; Seuring and Gold 2012). This approach enables us to identify and synthesize all relevant studies of IUs using a reliable, transparent and replicable process (Tranfield et al .…”

Section: Literature Review Methodologymentioning

confidence: 99%

“…Hence, performance measurements should assess the degree to which those objectives are met (Meyer et al . 2020). However, tying a structural element (i.e.…”

Section: Thematic Analysis and Synthesis Of The Literaturementioning

confidence: 99%

Intermediate Units in Multinational Corporations: Advancing Theory on their Co‐parenting Role, Dynamics and Outcomes

Barber

Botella-Andreu

Villar

2020

Int J Management Reviews

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Due to the dispersion of headquarters’ activities across organizational and geographical boundaries, intermediate units (IUs) are emerging as a key actor in international business. These units are intermediate structural layers between headquarters (HQ) and local subsidiaries with specific HQ responsibilities. Through a systematic review of 68 studies published between 1996 and 2020, we develop a conceptual framework that integrates complementary streams of theoretical and empirical research with IUs as the focal unit of analysis. Our aims are to disentangle how the main theories in this field address the antecedents of IU creation, and explain the dynamism in the roles and functions of IUs and their outcomes. We also propose a conceptualization of IUs as co‐parents in a dynamic system in which parenting functions are shared by IUs and headquarters. Finally, we highlight avenues for future research, emphasizing opportunities to advance the understanding of IUs using different theoretical lenses that may help scholars position their work within the broader stream of literature.

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“…The opposite argument posits that greater international interaction may be problematic to the extent that corruption is “contagious”. First is the argument that MNEs entering a foreign country with high levels of corruption may face pressures to engage in corrupt practices (Di Pietra & Melis, 2016 ; Meyer, Li, & Schotter, 2020 ). Second, globalization can allow home countries to export their own corrupt practices (Das & DiRienzo, 2009 ), which contradicts findings that emerging market MNEs may very well internationalize to escape the institutional voids in their home markets (Marano, Tashman, & Kostova, 2017 ).…”

Section: The Role Of Corruption In the Globalization–development Relamentioning

confidence: 99%

Globalization, economic development, and corruption: A cross-lagged contingency perspective

Aïssaoui

Fabian

2021

J Int Bus Policy

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The 2020 health and economic crisis has exacerbated tensions and debates over whether globalization benefits economic development, as countries face both pressures to enhance economic opportunities through globalization and populist movements seeking protection from global forces. We first review perspectives that offer competing evidence about the role of globalization in regard to economic development and corruption. Drawing on resource dependence and institutional theory, we test the two contingencies of the country’s stage of economic development (low, lower-middle, upper-middle, high) and the globalization dimension (economic, social, political) at play to reconcile competing findings. Using a cross-lagged panel design, we show that these contingencies significantly explain when and what type of globalization can benefit a country’s economy and affect corruption. In doing so, the study provides a platform for future research, and identifies important patterns that can better guide policymaking. Among other results, we find low-income countries’ GDP and corruption benefit the most from the formal dimensions of globalization. With increased wealth, countries are more responsive to the legitimacy accrued with the informal dimensions of globalization, which we find comes at the expense of economic efficiency for high-income countries.

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Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda

Cited by 218 publications

References 310 publications

Back to basics: Behavioral theory and internationalization

Back to basics: Behavioral theory and internationalization

Intermediate Units in Multinational Corporations: Advancing Theory on their Co‐parenting Role, Dynamics and Outcomes

Globalization, economic development, and corruption: A cross-lagged contingency perspective

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