Given their exposure to diverse institutional settings, decision making in multinational enterprises (MNE) is marked by inconsistencies and conflict. Within the comparative institutional analysis (CIA) literature, such inconsistencies are seen as a source of experimentation or innovation. By contrast, in the international business (IB) literature, institutions are primarily understood as constraints on MNE activity. The latter focuses on 'institutional effects' taking institutions as stable and determining of social agency, and says very little about how institutions shape capabilities of organizations to pursue a variety of strategies or change in diverse institutional settings. As a way of addressing this limitation, we aim to understand the conditions that enable actors to engage in strategic action despite institutional pressures towards statis. We demonstrate, through comparative case studies of two large MNEs, headquartered in Germany and the UK, that agency within MNEs is influenced by a fit between MNE coordination structures shaped by home country institutions and host country institutions' demands for flexibility or collaboration. Institutional incompatibilities between home and host contexts are unlikely to trigger actors' reflective capacity to change if the actors cannot draw on supportive coordination structures in the MNE.