MNC organizational form and subsidiary motivation problems: Controlling intervention hazards in the network MNC

Foss, Kirsten; Foss, Nicolai J.; Nell, Phillip Christopher

doi:10.1016/j.intman.2012.03.001

Cited by 73 publications

(80 citation statements)

References 82 publications

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“…We contribute to extant literature in several distinct ways. First, we contribute to the literature on parenting in complex structures (e.g., Ambos and Mueller-Stewens 2016;Birkinshaw et al 2006;Foss et al 2012;Poppo 2003) in explicating circumstances under which we can expect to observe overlapping headquarters' involvement. We theorize on network related aspects (i.e., intra-/ inter-divisional embeddedness and network size) of organizational complexity, and how this is related to dual headquarters involvement.…”

Section: Discussionmentioning

confidence: 99%

“…By questioning the overly simplistic views of the headquarters of the multibusiness firm, this paper contributes to the emerging literature on parenting in complex structures (e.g., Birkinshaw et al 2006;Foss et al 2012;Poppo 2003;Galbraith 2009). A key feature of the innovation development process is the network embeddedness of the firm hosting the development.…”

Section: Discussionmentioning

confidence: 99%

“…However, there are still a number of outstanding issues. While prior research has highlighted some contingencies to the classic M-form organization, ''empirical findings have often been statistically modest'' (Martin and Eisenhardt 2010, p. 266) and a theory of selective involvement of headquarters can still be considered underdeveloped (Foss et al 2012;Poppo 2003). Furthermore, extant research focuses nearly exclusively on the firm-level and investigates corporate headquarters involvement in divisional affairs (Martin and Eisenhardt 2010).…”

Section: Parenting In the Multibusiness Firmmentioning

confidence: 99%

“…First, we contribute to the literature on parenting in complex structures (e.g. Birkinshaw et al 2006;Foss et al 2012;Galbraith 2009;Kostova et al 2016;Poppo 2003). This literature predicts that dual headquarters involvement is unlikely to occur since it is costly and draws on the scarce resources and attention of headquarters staff Nell et al 2011;Poppo 2003), since it runs counter the traditional M-form logic (Chandler 1991;Verbeke and Kenworthy 2008;Williamson 1975), and because it increases the likelihood of conflicts and coordination problems (Goold and Campbell 2002;Gong et al 2007).…”

Section: Introductionmentioning

confidence: 99%

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Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms

et al. 2017

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We investigate ''dual headquarters involvement'', i.e., corporate and divisional headquarters' simultaneous involvement in innovation development projects hosted by subsidiaries of multibusiness firms. Drawing on selective hierarchical involvement theory and the literature on subsidiary network embeddedness, we analyze 83 innovation projects in 22 multibusiness firms and find that the number of partners in the projects, rather than subsidiary intra-and inter-divisional embeddedness acts as a driver of dual headquarters involvement. We do however find that intra-and inter-divisional embeddedness is positively related to dual headquarters involvement when the number of partners in the innovation project is relatively large. These results lend support to the idea that parenting in complex organizations entail complex headquarters structures. Our results suggest that we need to go beyond simple conceptualizations of headquarters and that considering different dimensions of the innovating subsidiary's network helps in explaining dual headquarters involvement.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Parenting In the Multibusiness Firmmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms

et al. 2017

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“…Alfoldi et al 2012;Björkman et al 2004). In contrast to this loss preventing role of the CHQ (e.g., Chandler 1991;Foss 1997), another stream of research emphasizes that the CHQ should have a more active and value adding role (Ambos and Mahnke 2010;Chandler 1991;Collis et al 2007;Egelhoff 2010;Foss 1997;Foss et al 2012). This would include responsibilities such as the facilitation of organizational learning and knowledge transfer, which implies the CHQ as an active participant in valuecreating processes at the subsidiary level (Forsgren and Holm 2010).…”

Section: Introductionmentioning

confidence: 99%

The Value-Adding Role of the Corporate Headquarters in Innovation Transfer Processes: The Issue of Headquarters Knowledge Situation

Lind

Kang

2017

Manag Int Rev

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The aim of this study is to investigate the value-adding role of corporate monitoring and corporate involvement in 'sticky' inter-subsidiary innovation transfer environments. The value added role of these two managerial approaches is viewed in terms of their impact on innovation transfer efficiency and effectiveness. Based on the network view of the MNC, our research builds on the notion that the corporate headquarters (CHQ) is ill-informed and may suffer from a radical uncertainty about what it actually knows and needs to know. By using a data sample containing 87 innovation transfer projects in 25 multinational companies, we test six sets of hypotheses. Overall, our findings show that the value added of CHQ monitoring as well as an active CHQ involvement is considerably constrained. However, contrary to our expectations, the results show that CHQ monitoring gives rise to an increase in both transfer efficiency and effectiveness when the 'stickiness' is based on tangible resource constraints. The results imply that when it comes to CHQ involvement during the innovation transfer processes, the choice between a handsoff and a hands-on approach has to be understood in the light of the CHQ's knowledge situation.

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Sowing the seeds of subsidiary influence: Social navigating and political maneuvering of subsidiary actors

Conroy

Collings

Clancy

2018

Global Strategy Journal

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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.

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MNC organizational form and subsidiary motivation problems: Controlling intervention hazards in the network MNC

Cited by 73 publications

References 82 publications

Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms

Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms

The Value-Adding Role of the Corporate Headquarters in Innovation Transfer Processes: The Issue of Headquarters Knowledge Situation

Sowing the seeds of subsidiary influence: Social navigating and political maneuvering of subsidiary actors

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