Performance effects of MNC headquarters–subsidiary conflict and the role of boundary spanners: The case of headquarter initiative rejection

Recent research suggests that both the scholarly and the managerial perspectives on intra-organizational conflict in multinational corporations (MNC) between headquarters (HQ) and their foreign subsidiaries have changed. Today, conflict is not necessarily regarded as dysfunctional or the result of inefficient global integration. Instead, conflict is now considered a normal consequence of organizing and managing across national borders. This research advances the literature on HQ–subsidiary relationships by adding new insights to the Headquarters–subsidiary conflict discussion, especially in the so far under-researched case of headquarter initiative rejection by foreign subsidiaries. We specifically focus on subsidiary conflict negotiation tactics, the effects of organizational and individual managerial power, and the characteristics and roles of MNC managers that act as boundary spanners during intra-organizational conflict processes. A qualitative, iterative, multiphase research approach was used to develop new theory pertaining to the phenomenon. The results show that in the presence of boundary spanners, dysfunctional conflict is less common and better overall organizational performance can be achieved for both the subsidiary and the MNC as a whole. The results also indicate that the boundary spanning ability is only partly formalizable and that some MNCs are able to foster boundary spanners better than others.     

Getting to the Helm: Women in Leadership in Federal Regulation

Why is it important for women to hold leadership positions in organizations? If it is important for women to hold leadership positions in organizations, how do women get into such positions? Both public administration research and organizational research provide answers to these questions. However, the integration of these two bodies of literature remains limited. This study joins public administration scholarship on representative bureaucracy and management scholarship on women in leadership to hypothesize and test institutional, organizational, and political explanations for women’s attainment of leadership positions together in one model. This study examines how women get into upper-level leadership positions in 12 federal regulatory organizations over more than 20 years of time. Findings suggests that women are more likely to gain access to leadership positions when the dominant political ideology is democratic and in agencies that work in feminine policy contexts, are younger, and where the risk of failure is higher.     

Maintaining product quality consistency when offshoring to emerging markets: The role of subsidiary control

Offshoring can increase firms' exposure to product quality risks, such that manufacturing firms need effective tactics to maintain product quality consistency across offshoring subsidiaries. With an agency theory approach, the present study seeks novel insights into three widely used subsidiary control mechanisms for achieving product quality consistency across offshoring subsidiaries in emerging markets and developed home countries. Through surveys of 150 subsidiaries of multinational corporations in heavy industries operating in China, the paper tests a proposed model using hierarchical linear regression, accounting for endogeneity concerns using the Gaussian copula method. The analysis yielded several findings: An inverted U-shaped relationship exists between decision autonomy and product quality consistency; expatriate staffing positively predicts product quality consistency and attenuates the negative effects of excessive autonomy on product quality consistency; and compared with greenfield entry, mergers and acquisitions negatively predict product quality consistency.     

Performance implications of MNE subsidiary federation: Evidence from India

Building on extant and emerging scholarship on the deepening of MNE operations in a foreign country, we develop the notion of subsidiary federation, viz., a constellation of legally independent majority-owned subsidiaries of a foreign MNE, in a single host country. We posit that subsidiary federation is a reservoir of host country experiences, resources, knowledge, and networks, and allows the parent MNE strategic flexibility in terms of where and how they choose to operate. The sharing of knowledge facilitated by interactions among the managers of affiliated subsidiaries bestows advantages that, we argue, are performance positive for the affiliates. We hypothesize that multiple subsidiaries in a foreign host country is positively associated with corporate level diversity, and that benefits to the affiliates in a subsidiary federation are associated with the size of the federation and with relative geographic location of the affiliates. We test our theory on a sample of foreign MNE subsidiaries in India during the 2000–2013 period and find strong empirical support for our hypotheses. We conclude with avenues for future research.     

Developing subsidiary contribution to the MNC—Subsidiary entrepreneurship and strategy creativity

Despite its theoretical and managerial significance, subsidiary entrepreneurship and its effects on subsidiary contribution remain underexplored in the literature. We propose that subsidiary entrepreneurship encourages more creative strategic responses to escalating environmental change. We explore the direct and mediating effects of subsidiary entrepreneurship on subsidiary contribution to the MNC, particularly subsidiary strategy creativity. We use structural equation modelling to test our propositions on data generated from surveying the population of Irish subsidiaries of foreign MNCs, and find strong support for our theoretical predictions. The managerial implications of subsidiary entrepreneurship in generating creative strategy, prompting strategic initiatives and improving performance are discussed.     

Documentation of subsidiary bodies of the economic and social council

In this lecture the author describes the activities of the subsidiary bodies of the Economic and Social Council and the documentation these activities give rise to. Included in the discussion is the documentation of the standing committees, the functional commissions and the regional economic commissions.     

Establishment of risk acceptance criteria using Life Quality Index: Application to the Indian context

The formulation of risk acceptance criteria may be coupled gainfully with a prediction of the of investment required to comply with it, an exercise which can benefit from the application of socioeconomic indicators. The Life Quality Index (LQI) is one such indicator which amalgamates human mortality and wealth creation and places an implicit economic value on reduction of life risk. While there have been a number of studies to demonstrate the application of LQI pertaining to various technological systems, the present work extends it to estimate the sectoral level investment needed to reduce public risks to within the As Low As Reasonably Predictable region for the chemical industry, with specific illustration of the methodology for India. The potential reduction in public individual risk is computed as a function of percentage increase in safety investment expressed as a fraction of the industry's contribution to the nation's GDP. In addition, using a new, more accurate expression, estimates of a related parameter, the implied cost of averting a fatality (ICAF), are obtained for a number of developed economies and India. The ICAF estimates show reasonable agreement with the value of statistical life (VSL), a parameter which is integral to cost-benefit analysis of safety and environmental regulations.     

Getting Professionals to Plan: Pressures, Obstacles and Tactical Responses

It has long been accepted that professional services gain their business on the basis of their own reputation or through client referral. It was almost an unspoken rule not to market their services, but in today's climate there is a need to break from this mould. In order to understand change in professional services, an in-depth survey was conducted covering 25 legal firms and 25 accountancy firms. This survey looked at three aspects: the pressure to conduct strategic marketing planning; the obstacles to such planning; and the tactical responses to these obstacles. The one-to-one interviewing method chosen brought forth genuine and sometimes surprisingly frank responses. The potential benefits of strategic marketing planning are examined, together with the difficulties of adopting such an initiative. The outcome of this research highlights a series of implications for theorists and practitioners, with suggestions of areas for further study.     

Getting New Staff to Stay: The Mediating Role of Organizational Identification

Newcomer turnover is a major cost to organizations, and the quality of new employees' experiences in the first few months is critical in determining whether they decide to stay or leave. In a study that focused on the first stage of newcomer socialization, we investigate the impact of perceptions of social validation from the team and the team leader, and perceived fairness of treatment on newcomers' identification with their work team and the organization, specifically measuring the group self‐investment components of identification. The mediating role of these levels of group self‐investment and of the imbalance (i.e. difference) between levels of self‐investment on turnover intentions was also tested. New staff (N=569) joining a large public‐sector organization completed a questionnaire about their socialization experiences in their first 6 months of their employment. Structural equation modelling revealed that social validation by the team and team leaders, and fairness of treatment, predict increased investment with the organization and with the team. Organizational‐level self‐investment and an imbalance in favour of investment with the organization over that of the team mediated decreases in turnover intentions. We conclude that organizations should provide newcomers with validation that promotes identification with their organization during this critical stage of socialization.     

Institutional antecedents of subsidiary external embeddedness: Coping with regulatory competitive constraints

We investigate institutional antecedents to subsidiary external embeddedness and relate regulation constraining competition in local service sectors to subsidiary embeddedness with local partners in complementary sectors. Combining research on business networks with arguments derived from transaction cost economics, we argue that subsidiary external embeddedness depends on the extent of transaction costs originating from small numbers bargaining, which regulatory competitive constraints in local service sectors are a source of. Based on this logic, we suggest that low and high levels of regulatory competitive constraints are associated with greater subsidiary external embeddedness. We also suggest that this U-shaped relationship is more pronounced for subsidiaries that are centers of excellence within the multinational enterprise because these subsidiaries heavily depend on the local context as a source of their competitive advantage over their sister subsidiaries.     

A new tool for hospital/ physician strategic alignment: the subsidiary physician corporation

Physicians' and hospitals' strategies often diverge--with poor results for both. The causes of this divergence are many. They include different methods of payment, divisive governmental regulations (like Stark) and cultural differences.     

On the emerging organizational culture of a Finnish company's Polish subsidiary

The following research note presents a brief account of ethnographic research conducted within a Polish subsidiary of an international company domiciled in Finland. Local employees' attitudes towards various aspects of the parent company's organizational culture are examined, and an attempt is made to capture emerging patterns of the subsidiary's organizational culture.     

Pathways to social value and social change: An integrative review of the social entrepreneurship literature

Social entrepreneurship has emerged as an important means of addressing grand challenges. Although research on the topic has accelerated, scholars have yet to articulate an overarching framework that links the different pathways taken by social entrepreneurs with the positive effects of these efforts. To address this shortcoming, we conducted a systematic literature review which enabled us to conceptually differentiate between social value and social change as distinct outcomes of social entrepreneurship and identify seven pathways for achieving these outcomes. Building on our analysis, we outline a research agenda for questions pertaining to: the dynamics between social value and social change; how contextual factors and social entrepreneurs influence various pathways; design principles of business models and innovations that facilitate social value and social change; and defining, measuring, and ensuring accountability for social value and social change.     

Getting Together to Get Ahead: The Impact of Social Structure on Women's Networking

This paper examines the impact of socio‐structural variables (i.e. perceptions of permeability, stability and legitimacy of intergroup relations) on the extent to which professional women perceive a women's network as a collective strategy for status enhancement. A survey among network members (n=166) suggests that the extent to which women support and consider a network to benefit women as a collective is dependent on perceptions of whether individual mobility is possible (permeability of group boundaries) and beliefs that organizational conditions will improve for women in the future (stability of conditions for women). Specifically, the network is less likely to be perceived as a collective vehicle for change when individual advancement is possible (because intergroup boundaries are perceived as permeable) and status improvement in the future is unlikely. However, regardless of beliefs about the future, when female participants perceive that many barriers to individual advancement exist (due to the impermeability of intergroup boundaries), the network is considered in more collective terms presumably because the only way to challenge the status quo is through a collective effort. The practical implications for organizations that wish to or have established a women's network are discussed.     

Physician acceptance of new medical information systems: the field of dreams

Physicians often fail to embrace a complex information system, may not see its relevance to their practices, and are characteristically reluctant to invest the time and energy to be trained in its use. Why is widespread physician buy-in so difficult to achieve? From physicians overwhelmed with change to failing to begin with an adequate physician base of support, this article explores some of the reasons that physicians demonstrate little buy-in to this process and offers suggestions to help create a more successful implementation. Ways to build acceptance include acknowledging the importance of physicians as customers and training them early and often.     

Transferring knowledge in MNCs: The role of sources of subsidiary knowledge and organizational context

We link up with the recent literature on the differentiated MNC and in particular with its stress on intra-MNC knowledge flows. However, rather than focusing on the characteristics of knowledge as determinants of knowledge transfer within MNCs, we focus instead on levels of knowledge in subsidiaries, the sources of transferable subsidiary knowledge and on the organizational means and conditions that realize knowledge transfer as the relevant determinants. We find largely positive support for the relevant hypotheses. These are tested on a unique dataset on knowledge development in subsidiary firms [the Centre of Excellence (CoE) project].     

Information technology: the next wave. Clinician acceptance of information technology

Information systems have yet to make a significant inroad at the interface between clinicians and patients. The obstacles to implementing information systems at the clinical level are formidable. As these systems have begun to mature and marketplace pressures have created changing needs for clinicians and the integrated delivery systems they are working in, the need for these systems has increased. Understanding the pressures that managed care brings to bear on clinical processes will facilitate clinicians' acceptance of these technologies.