Perceived senior leadership opportunities in MNCs: The effect of social hierarchy and capital

Abstract

Drawing on the structural perspective in organizational theory, this study develops a conceptual framework of the social hierarchy within the multinational corporation (MNC). We suggest that parent, host, and third country nationals occupy distinctively different positions in the social hierarchy that are anchored in their differential control or access to various forms of capital or strategically valuable organizational resources. We further suggest that these positions affect employees' perceptions of senior leadership opportunities, defined as the assessment of the extent to which nationality and location influence access to senior leadership opportunities. Using multilevel analysis of survey data from 2,039 employees in seven MNCs, the study reveals two significant findings. First, host and third country nationals perceive that nationality and location influence access to senior leadership opportunities more than parent country nationals. Second, three moderating factorsgender, tenure, and education-increase the perception gaps between parent country nationals on the one hand and host and third country nationals on the other, although these results are inconsistent. These findings indicate that the structural position of parent, host, and third country nationals in the social hierarchy affect sense-making and perceptions of access to senior leadership opportunities.

The politics of cultural capital: Social hierarchy and organizational architecture in the multinational corporation

“…Examining political conflict within the MNC context requires identifying the relevant actor groups that compete for social status (Becker-Ritterspach and Dörrenbächer, 2009) and struggle for recognition of their cultural resources (Levy et al, 2015). Here, we draw on previous conceptualizations to distinguish between actors associated with HQ and with subsidiaries (Clark and Geppert, 2011; Delmestri and Brumana, 2017; Ferner et al, 2012).…”

“…Cultural capital and the social hierarchy are therefore mutually constitutive, sorting individuals and groups into more or less advantageous positions in the social structure according to their capital endowments. However, IB research has focused almost exclusively on strategic and economic rationales, giving very little consideration to the underlying cultural logic and social meaning of these social positions and roles (Levy et al, 2015).…”

“…However, mainstream research has failed to recognize these stakes and mostly ignored the role of culture and power in major organizational transformations, describing them largely in evolutionary terms rather than as sites of political conflicts (Geppert and Dörrenbächer, 2014). Consequently, the political struggle among holders of different forms of capital in the bid to preserve or gain dominance has remained largely unexplored (Levy et al, 2015).…”

Human capital in multinational enterprises: Does strategic alignment matter?

“…Given the two primary roles of expatriates (cf., control and coordination, knowledge transfer and learning), a crucial decision call for MNEs is to determine the composition of PCNs and HCNs in foreign subsidiaries (Delios & Bjorkman, 2000;Gong, 2003;Levy, Taylor, Boyacigiller, Bodner, Peiperl, & Beechler, 2015) because PCNs and HCNs represent distinct resources and capabilities for implementing a subsidiary's strategy (Hitt et al, 2001;Lee & Miller, 1999). PCNs have a better understanding of corporate culture and priorities and are able to effectively communicate with HQ, so they are more likely to facilitate transfers of organizational practices and help align and coordinate the parent company's goals with the subsidiary's mandates (O'Donnell, 2000;Reiche, Harzing, & Kraimer, 2009).…”

Bourdieu Capitals and Leadership: The Case of Design Consultant Firms’ Managers in the Malaysian Construction Industry

“…Bourdieu capitals used for leadership studies are in education [20], sports [21], and community researches [22]. Evidences of leadership studies using Bourdieu capitals in other fields include business [23], ethnic studies [24] and politics [25]. No leadership studies based on Bourdieu capitals has been carried out upon the creative practitioners in the construction industry.…”