Technology development control styles in multinational corporations: a case study

Multinational firms tend to geographically disperse their R&D activities to a larger extent than in the past. International R&D seems to play an increasingly important role within the global process of technological innovation taking place in multinational corporations. As a consequence, firms are challenged to design global R&D organisations and manage foreign units playing a central role in their innovation process. A key managerial aspect is the balance between autonomy and control of foreign R&D units. This case study deals with management control styles over foreign R&D units. It is based on the results of an empirical analysis of 16 multinational firms operating in technology-intensive industries. It proposes a taxonomy of management control styles in foreign R&D and gives the cue for further research in the area of technology development control.     

Communication accommodation within global virtual team: The influence of cultural intelligence and the impact on interpersonal process effectiveness

The study builds on existing literature on global virtual team (GVT) and focuses on how individual members can achieve higher levels of interpersonal process effectiveness. Anchoring on the theory of intelligence, this study establishes and examines cultural intelligence (CQ) and how it can relate and influence a GVT member's interpersonal process effectiveness. Furthermore, this study extends the literature by drawing from communication accommodation theory in examining how communication accommodation plays an important role in the effective functioning of a GVT member. To test these assertions, data were collected from members of GVTs and their colleagues (n = 262 paired data) in a multinational information technology offshoring firm. Data were analyzed and the results revealed that a GVT member's CQ relates positively and significantly to effectiveness on both interpersonal processes of synergy and direction. Furthermore, results showed that communication accommodation of a GVT member is influenced by CQ which consequently impacts both effectiveness on interpersonal processes of synergy and direction. These results contribute to the growing literature on GVT and offer new practical insights on how to improve overall efficiency and work performance within GVT.     

Designing a control system for a multinational subsidiary

This article discusses how the control systems for multinational subsidiary managers are affected by national variables such as political risk, financial/monetary policies and relative cultural distance. These environmental factors are reviewed and synthesized into a three-dimensional model to help a manager diagnose these influences and choose the appropriate control system. This model illustrates how the salience of input control increases as multinational entities increasingly compete globally in nations with unstable financial/monetary policies, significant government restrictions and high cultural distance. Global expansion into countries with one or more of these will require multinational entities to pay added attention to how they recruit, train and reward subsidiary managers.     

The complementary effects of rationality and intuition on strategic decision quality

Rationality and intuition are important dimensions of the strategic decision process. Prior studies have viewed these as distinct dimensions, providing limited insights for our understanding of strategic decision processes. Drawing on the dual process theory and research on process capability, this study examines the interplay between rationality and intuition based on a sample of 103 strategic decisions made by service firms in Greece. The results suggest that combining rationality and intuition at the same time leads to successful strategic decisions. Also, the moderating role of environmental dynamism was investigated. We found that in dynamic settings, decision-making teams which combine rationality and intuition outperform teams which use rationality or intuition separately. The implications of these findings for theory and practice are important and are analysed in the paper.     

Real Options in Management and Organizational Strategy: A Review of Decision‐making and Performance Implications

This paper contributes to the debate on the role of real options theory in business strategy and organizational decision‐making. It analyses and critiques the decision‐making and performance implications of real options within the management theories of the (multinational) firm, reviews and categorizes the organizational, strategic and operational facets of real options management in large business settings. It also presents the views of scholars and practitioners regarding the incorporation and validity of real options in strategy, international management and business processes 1 . The focus is particularly on the decision‐making and performance attributes of the real options logic concerning strategic investments, governance modes and multinational operations management. These attributes are examined from both strategic and operating perspectives of decision‐making in organizations, also with an overview of the empirical evidence on real options decision‐making and performance.     

Exploring information technology governance and control of web site content: a comparative case study

Information technology (IT) governance is a key component of corporate governance. Effective IT governance can support web-based strategic initiatives such as the dissemination of information on corporate web sites. However, the IT governance literature does not provide insights about the role of IT governance in controlling this information. There is also a lack of research in the web-based reporting literature on the important issue of control of web site content. This comparative case study aims to explore the relationships between IT governance and the control of web site content. In doing so, IT governance structures, processes and relational capabilities, as well as web site content control, are first described for each of four cases. Then, profiles of relationships between IT governance and web site content control are identified and key attributes characterizing the profiles are outlined. Findings suggest that IT governance within firms is more developed than the control of web site content. Moreover, IT governance structures, processes and relational capabilities can be related to control of web site content processes. IT governance structures can also be related to control of web site content structures and relational capabilities. This study contributes to the governance, control and web-based reporting literatures as an exploratory step before building a theory of relationships between IT governance and web site content control. Further, the study has practical implications as it enhances the understanding of the role of Boards of Directors, senior executives and internal auditors in IT governance and the control of web site content.     

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.     

Leaders' cultural gap bridging behaviors and subordinates' work engagement in multinational teams

The effect of leadership on individuals in multinational teams remains underexplored. Based on self-concept theory, our study investigates how subordinates' work engagement is influenced by their perception of leader cultural gap bridging (CGB) behaviors that seek to facilitate intercultural collaboration in multinational teams. We draw on a quantitative, two-wave, individual-level study with 280 employees working in multinational teams. Our results reveal that subordinates' perception of leaders' CGB behaviors enhance their work engagement through its effect on their team identification. The positive indirect effect is contingent on the level of relationship conflict in the multinational teams.     

Management control in multinational companies: a systematic literature review

Review of Managerial Science - Executing management control across borders is crucial for multinational companies (MNCs). Various management control mechanisms serve to align foreign subsidiaries...     

Work systems in heavy engineering: the role of national culture and national institutions in multinational corporations

This paper is based on an Anglo-German research project of two research groups in both countries. It is based on data collected by qualitative research in the three largest multinational corporations (MNCs) in the lift and escalator industry. The headquarters (HQs) of the three corporations are based in the United States, Finland and Germany, respectively, and all three MNCs each have subsidiaries in Germany and Britain. Our main objects of analysis were change processes in the work systems of these three MNCs.We chose the lift and escalator industry as an example because it has been characterized by strong concentration processes during the last 10 years. Most of these corporations have grown by acquisition and there are strong tendencies in the market towards standardized, globally uniform products.National cultures and institutions, first of all play a role on the HQ level. Important areas were the standardization of products and production technology, the design of management systems and location and relocation decisions for R&D and manufacturing. Second, MNCs take differences in national cultures into account and deliberately “use” them in allocating resources and investment within the multinational group. National cultures and institutions massively shape the very formulation of manufacturing strategies within the multinational groups, as well as the R&D strategies—a particular important field in an industry still relying heavily on small-batch and unit production. National cultures also play a significant role in implementing the global strategies of MNCs in different host countries. Our data reveal striking differences on this level.     

跨国公司逆向知识转移研究述评

知识在跨国公司内的转移是其建立竞争优势的关键,因而跨国公司知识转移一直是学者们研究的主题。经过了传统正向知识转移、水平知识转移2个热点后,近几年逆向知识转移开始成为学者的关注焦点。从多个视角系统地梳理了逆向知识转移研究的相关成果,指出了相关研究的发展脉络并探讨了未来的研究方向,以期为后续研究提供参考。     

Top management teams within multinational corporations: Effects of cultural heterogeneity

This research examined the relationship of cultural heterogeneity with team and organizational performance, as mediated by selected aspects of group processes. The study was done with top management teams (TMTs) in international subsidiaries of multinational corporations (MNCs). It was found that cultural heterogeneity within the TMT is positively related to both the level of issue-based conflict the team experiences and to TMT performance. The TMT performance and the subsidiary's performance were positively related. Issue-based conflict affected negatively TMT performance but had a positive effect on subsidiary performance. The hypothesis that cultural heterogeneity would be negatively related to TMT cohesion was not supported. The results provide general support for the importance of cultural heterogeneity for the functioning of TMTs and their international subsidiaries.     

跨国公司子公司自主性活动研究——从有限理性角度的分析

在跨国公司(MNCs)子公司演进模型中,子公司有着明显的自主愿望,自主权可以超越母公司的控制,引起对闲置资源的很大兴趣,激发子公司的积极性和创造性,但母公司也常常担心子公司的自主行为带有投机性,有可能偏离母公司的资源配置目标,使得MNCs迷失方向。而本论文认为母公司的有限理性是管理子公司自主性活动的主要交易成本,而非子公司的机会主义,母公司除了利用传统的克服机会主义的控制和协调工具之外,还应当重视使用内部市场机制和社会化方法,来减轻母公司的有限理性约束,形成母子公司间共同的认知地图,达成有意义的双方互利的联盟,从日益增多的子公司自主性活动中受益。     

An empirical evaluation of the management resourcing strategy of a Western multinational within a post-socialist Polish subsidiary

The continued globalization process and internationalization of business is increasingly raising issues concerning human resource strategy and practice in those organizations operating across international boundaries. This paper presents an empirical evaluation of the management resourcing strategy of a Western multinational corporation (MNC) within a post-socialist Polish subsidiary. Findings suggest a high level of pragmatism in relation to management staffing decisions. Whilst normative resourcing models emphasize the importance of environment, organization and job analysis in selecting and preparing managers for expatriate appointments, these processes are contingency constrained. Difficulties of adaptation and integration of the Polish subsidiary serve to increase reliance on expatriate managers.     

驱动资源与跨国公司在华突破性创新绩效研究

整合资源基础理论和资源配置理论,考察关键资源对跨国公司在华突破性创新绩效的驱动机制,利用中国13个省165家在华跨国公司样本,识别出跨国公司在华突破性创新的两种关键驱动资源为营销资源和技术资源,构建驱动资源对突破性创新绩效的影响机理模型,采用路径分析和结构方程模型对研究假设进行检验。研究结果表明,营销资源和技术资源同时驱动跨国公司在华突破性产品创新和过程创新绩效,而过程创新对产品创新有正向影响。因此,要有效提高突破性创新绩效,在华跨国公司应将有限的要素优先投资于营销资源和技术资源的构建上,注重顾客关系管理和竞争者研究,并在突破性创新实践中加强过程导向,重视信息系统和工艺流程,突出过程创新的重要性。     

Socio-political processes in international management in post-socialist contexts: Knowledge,learning and transnational institution building

This paper contributes to the recent debates and emerging concepts in the international business literature by applying a social–institutionalist perspective that focuses on the processes of institution building in ventures between Western multinational corporations and post-socialist enterprises. It is argued that the knowledge and learning processes within these transnational sites are constitutive of the actual management and organizational practices that emerge in these social microcosms of transformation. In transition and other emerging economic contexts, international ventures are typically based on asymmetrical relationships, in which the balance of power is structurally weighted in favor of the MNC. Notwithstanding this dominance structure, constructing new practices within the transnational social space is a socio-political process involving power-holders such as senior managers representing the Western MNC and the local enterprise. The paper argues that the strategic orientations of these key power-holders are critical variables in explaining the diversity of concrete patterns of institution building on transnational sites.     

Ownership Strategy and Foreign Affiliate Performance in Multinational Family Business Groups: A Double-edged Sword

We argue that ownership strategies can be a double edged sword for multinational family business groups from emerging economies and the performance of their affiliates located abroad. We test an integrated framework based on internalization and agency theory on a longitudinal dataset of multinational family business groups from Taiwan. We find evidence for the contingent impact of cultural differences and family management on the association between ownership strategy and affiliate performance. While direct ownership is seen as offering more control over the affiliate, we show that this comes at a performance cost for affiliates in culturally different host countries and affiliates under family management. Indirect ownership seems to be one way to positively influence affiliate performance in culturally distant countries, but seems not to be contingent on family management utilization.     

需求与回收确定下闭环供应链的竞争与链内协调研究

针对两条分别由单生产商和单零售商组成、零售商负责废品回收的闭环供应链,运用博弈论和均衡理论建立了对应两条闭环供应链均为分散式供应链、均为集中式供应链、一条为分散式供应链一条为集中式供应链的带均衡约束的均衡（EPEC）模型、纳什（Nash）均衡模型和带均衡约束的优化（MPEC）模型,并进行了模型求解。对比三种模式表明：集中式控制是供应链竞争下的占优策略。随后,给出了两条供应链竞争下可协调分散式供应链达到集中式供应链效果的批发价加回收补贴契约。最后的数值算例和敏感性分析表明了模型的合理性、协调契约的有效性、以及相关参数的影响。     

跨国经营海外子公司业务发展中企业的战略选择——辉瑞制药中国公司在华生产范围发展路径(1993~2002年)的启示

经济全球化给更多企业带来了跨国经营的机会与动力。本文着重分析在跨国经营中海外子公司在当地的业务范围如何演化、其发展路径通常受哪些因素的影响,而企业又可以通过做出哪些战略选择来更好地调节其发展路径。通过对辉瑞制药中国公司在1993￣2002年期间在华生产范围发展路径的描述和分析,本文提出两个观点。一是在跨国经营中企业通常面临保持公司在全球的业务整合以及适应当地市场具体条件的双重压力,当两者之间存在较大差异时,由于决策者的认知受有限理性的制约,海外子公司的业务并不会按现有文献中所提出的按母公司已有业务从强到弱顺序发展,而是呈现迂回发展的路径。二是企业可以通过对战略变量的参数的选择来调节其海外子公司的业务发展,而这样的参数调节过程有助于企业通过试探逐渐积累关于当地市场的知识,从而在跨国经营的双重压力中获取平衡。通过上述分析,本文希冀对中国企业开展国际化经营提供的启示是当企业在海外扩张中面临陌生的环境时,对当地市场的特性给予足够的关注并保持战略上的灵活性是取得成功的关键。     

International Diversity Management: Global Ideals and Local Responses

While the concern with demographic diversity in organizations has increased during recent years, international diversity management still remains an understudied area. This is unfortunate since the transfer of diversity management practices within multinational corporations faces particular challenges in balancing between global integration and local responsiveness. The aim of this paper is to illustrate some of the central problems that multinational corporations need to deal with when transferring diversity management practices from headquarters to local subsidiaries. This is illustrated by the results of an ethnographic field study on Danish expatriates in a Saudi subsidiary. Implications of the findings are discussed in detail.