Dual Organizational Identification in Multinational Enterprises and Interpersonal Horizontal Knowledge Sharing: A Conceptual Model

How does a subsidiary employees' dual organizational identification (DOI) – with both the local subsidiary and the overall corporation – shape the pattern of interpersonal horizontal knowledge sharing (IHKS) in multinational enterprises (MNEs)? This conceptual article develops a conceptual model demonstrating the relationships between subsidiary employees' DOI and their IHKS patterns (i.e., quantity, quality, and timing). We propose that subsidiary-oriented DOI is negatively associated with IHKS, while MNE-oriented DOI has the opposite effect. Building on this central argument, we posit that the geographic distance, relative competence, and interpersonal similarity between employees and colleagues at other subsidiaries can moderate the relationship between DOI and IHKS and cause unevenness in IHKS patterns that may aggregate at the corporate level, resulting in uneven knowledge flows in the whole MNE system. Our theorizing advances understanding of intra-MNE knowledge sharing by yielding novel propositions about the predictors of IHKS and uneven knowledge flows in MNE.     

Subnational Location Capital: The Role of Subnational Institutional Actors and Socio‐spatial Factors on Firm Location

Firms do not simply locate, but rather seek to accrue location‐based advantages such as knowledge, market insidership and resource utilization. Adopting the lens of social capital, this paper explores how subnational institutional actors facilitate location capital for firms. Using qualitative case study analysis of six multinational companies (MNCs), we highlight the important role of subnational institutional actors in fostering three dimensions of subnational location capital – structural, relational and cognitive. We show that subnational location capital, defined as the economic and social assets accessible through relationships within a subnational location, enable firms to derive advantages via subnational engagement. These findings contribute to the growing literature on the dynamic interaction of firms with subnational location, particularly the nuanced role of subnational institutional actors with MNCs.     

Transnational Diaspora and Civil Society Actors Driving MNE Internationalisation: The Case of Grameenphone in Bangladesh

Multinational enterprises (MNEs) are viewed as proactive global economic actors that enter new and emerging markets with intentional strategies, building on their inherent resources and firm-specific advantages. However, an international joint venture involves numerous actors in the market entry process. While emerging markets tend to feature complex institutional contexts and idiographic entry challenges, our study with a focus on emerging market presents two under-examined types of stakeholders as distinct social actors' that affect internationalisation process: the transnational diaspora and civil society actors. It provides evidence of the reactive internationalisation of an MNE, showing how the transnational diaspora drove the MNE's internationalisation and how a civil society actor, in conjunction with a diaspora member, facilitated the creation of an international joint venture (IJV) in Bangladesh. This case study analyses and describes the stages of development, documenting how Norwegian Telenor, American Gonophone, Japanese Marubeni and Bangladeshi Grameen Bank created an IJV named Grameenphone in Bangladesh, and how diaspora and civil society actors made up the prime movers and organisational capability base for this process, which would not have happened without their market-driving and enabling influence. The findings illustrate the central role of transnational diaspora entrepreneurship and the related innovation, motivation, contextual intelligence, networking and funding that supported this emerging-market IJV development. The study contributes to research on international joint ventures, transnational diaspora entrepreneurship and civil society actors and the internationalisation of MNEs.     

Equity sharing in international joint ventures: an empirical analysis of strategic and environmental determinants

Equity sharing in international joint ventures (IJVs) is a critical issue with implications for risk sharing, resource allocation, knowledge commitment, and organizational control. As a departure from previous research, this study aims to explore strategic antecedents and environmental dimensions underlying sharing arrangements. It argues that the structure of equity sharing controls the ex post degree of economic exposure or risk propensity, and boosts risk-adjusted returns earned from strategic resources or global integration. Analysis of data collected from IJVs in China suggests that strategic orientation, resource dependence, knowledge protection, and global integration as sought by MNEs are important antecedents of equity sharing. Equity sharing is an inverse function of host-country environmental complexity and hostility as perceived by MNE managers.     

How can MNEs benefit from internationalizing their R&D across countries with both weak and strong IPR protection?

Although MNEs internationalize their R&D not only in developed countries but also in emerging economies that typically feature weak protection of intellectual property rights (IPR), it remains unclear how this strategic decision affects their productivity performance. This limitation has resulted in a rather incomplete understanding of why some MNEs become more productive through R&D internationalization while others do not. This study develops a new explanation, suggesting that R&D internationalization does not affect the productivity of all MNEs equally because of differences in the idiosyncratic way in which MNEs geographically distribute their R&D units across weak and strong IPR protection countries. In advancing this explanation, the study challenges the view that weak IPR protection is disadvantageous for MNEs by showing that (and specifying how) it: 1) increases the efficacy of MNEs' internal R&D, 2) strengthens the advantages of accessing globally dispersed knowledge, and (3) improves MNEs' ability to exploit cross-country differences in IPR protection. The study enhances understanding of the complex role of IPR protection, shifts scholarly attention from the degree of R&D internationalization to how MNEs should internationalize their R&D, and clarifies how the IPR context of their location choices matters.     

Why Are Some Subsidiaries of Multinationals the Source of Novel Practices while Others Are Not? National,Corporate and Functional Influences

It has frequently been argued that multinational companies are moving towards network forms whereby subsidiaries share different practices with the rest of the company. This paper presents large‐scale empirical evidence concerning the extent to which subsidiaries input novel practices into the rest of the multinational. We investigate this in the field of human resources through analysis of a unique international data set in four host countries – Canada, Ireland, Spain and the UK – and address the question of how we can explain variation between subsidiaries in terms of whether they initiate the diffusion of practices to other subsidiaries. The data support the argument that multiple, rather than single, factor explanations are required to more effectively understand the factors promoting or retarding the diffusion of human resource practices within multinational companies. It emerges that national, corporate and functional contexts all matter. More specifically, actors at subsidiary level who seek to initiate diffusion appear to be differentially placed according to their national context, their place within corporate structures and the extent to which the human resource function is internationally networked.     

Intervention Research as Management Research in Practice: Learning from a Case in the Fashion Design Industry

Research in the field of management and organizational sciences has yielded a deeper understanding of many emerging business issues. However, the relevance of the contributions has been increasingly criticized, in both the academic and public spheres. We propose the intervention research approach – originally developed by the research group at Ecole des Mines de Paris – as a design science approach able to address both the relevance gap issue and the growing complexity of management practice. It is argued that increasing our understanding of management requires research that is more insightful, influential and immediately applicable. This in turn requires closer collaboration between management and researchers during the inquiry process, which is not always easy to achieve. An illustrative case study of an intervention research project focusing on creativity, conducted in Italy in collaboration with a fashion company, demonstrates how intervention research can be rigorous and relevant to practitioners, and how it can advance theoretical knowledge in management science.     

The role of R&D resource commitment in accessing co-location advantages

In a globalized economy, multinational enterprises (MNEs) pursue competitiveness through cross-border knowledge exploitation and exploration in international R&D. It is conventionally assumed that for subsidiaries to effectively access co-location advantages in knowledge milieus abroad, high levels of resource commitment are required. This paper analyses the relationship between resource commitment and access to co-location advantages, first theoretically and then through a case study of two MNEs in high-tech industries. We disaggregate the composite concept of resource commitment and demonstrate the dimensions accentuated, respectively, by the resource-based view, transaction cost economics and institutional theory. Next, we analyse the relationship between resource commitment and co-location advantages for 11 R&D subsidiaries of the two MNEs. Based on this analysis, we discuss the relationships between the empirical findings and the theoretically differentiated resource commitment dimensions. The study finds that high resource levels are less important for access to co-location advantages than conventionally assumed, while the level of commitment associated with allocated resources appears consistently to be important, lending more support for the relevance of institutional theory-related dimensions of resource commitment than the resource-based view-related ones. We also find support for the claim that more flexible governance arrangements promote access to co-location advantages in asset exploration.     

Micro-political or inter-cultural conflicts? – An integrating approach

The article focuses on inner-organizational conflicts arising with respect to processes of organizational transnationalization of multinational companies (MNCs). Two strands of debate are identified and discussed in this respect: one focusing on micro-political, the other one focusing on inter-cultural conflicts. It is argued that an integrative perspective on conflict processes is needed as neither power nor culture can be neglected or put in a secondary position when explaining conflicts in MNCs. Such an integrative framework is developed following Giddens' analytical differentiation of three dimensions of social systems: signification, domination and legitimation. It is argued that it depends on contextual variables framing the process of transnationalization, whether actors conceive of occurring conflicts as being either inter-cultural or micro-political. This theoretical argument is underscored by referring to two case studies from a German MNC in the process of transnationalization.     

A Saul Alinsky primer for the 21st century: The roles of cultural competence and cultural brokerage in fostering mobilization in support of change

How can a proponent of change mobilize groups and organizations in support of a common project? Building on an extensive review of social movement theorizing and action, we argue that shared interests, network connections, the availability of resources, and the emergence of political, market and corporate opportunities (the standard topics discussed in extant literature) may be necessary, but are often insufficient for spurring mobilization. Conversely, cultural factors such as frames, identities, or practices are essential. Their presence can facilitate coordinated action even among unlikely allies, and their absence can prevent such action. Inspired by the work of Saul Alinsky (1909–1972), along with contemporary illustrations, we construct a two-step model of the role of culture in mobilizing for change. We bring attention to a change proponent’s cultural competence – skill in appreciating the different cultural meanings and values of those involved in a particular project of change – and cultural brokerage – skill in bridging and negotiating among actors with different cultural repertoires, to reach a temporary truce or covenant. We focus on two types of activities that define cultural brokerage, integration and redefinition, and apply them to the cultural factors of frames, identities, and/or practices. Our paper contributes to contemporary research on social movements, institutional theory, and cultural sociology.     

Intra- and inter-regional diversification,subsidiary value chain activities and expatriate utilization

Although it is well established in the current staffing literature that why and how multinational enterprises (MNEs) allocate more or fewer expatriates in some subsidiaries than others, little is known about why and how some MNEs utilize more or fewer expatriates than other MNEs. This paper builds on regionalization theory to argue that intra- and inter-regional diversification has to do with the overall use of expatriates in MNEs. An empirical investigation of Korean MNEs demonstrates that the degree of intra- and inter-regional diversification has significant impacts on the level of expatriate utilization by MNEs. The results also reveal an interesting moderating influence of subsidiary value chain activities. MNEs tend to vigorously adjust their use of expatriates in downstream subsidiaries depending on the degree of intra- and inter-regional diversification. However, they do not adjust their use of expatriates in manufacturing subsidiaries upon the degree of international diversification. Overall, this study extends our understanding of how MNEs manage a geographically dispersed organization in a semi-globalized world.     

Toward a theory of local legitimacy by MNEs in developing nations: Newmont mining and health sustainable development in Peru

This paper describes a current initiative by Newmont Mining Corporation (Newmont) to develop sustainable community benefit in communities around its mining operations in Peru in response to heightened criticism of Newmont by non-government organizations and the media. Using anthropologically oriented methods, a community health assessment project in an area of projected mining is described in detail in this paper. This case adds to London and Hart's social embeddedness strategy for multi-national enterprises (MNEs) working in developing nations by introducing a locally-based community interaction model, which we describe as a local legitimacy strategy, in an effort to bring about sustainable development in the communities that surround a MNE's production activities. The components of our local legitimacy strategy include co-analysis of community needs by MNEs and community partners, and planning and investment in developments to enhance the social fabric and the physical infrastructure needs of communities. The developing world is getting better at publicizing and monitoring the work of MNEs. We argue that it will be increasingly necessary for MNEs, like Newmont, to add local sustainable benefit into their strategic mix to gain the social license and legitimacy that is needed to operate in poorer communities.     

Making and Mending your Nets: Managing Relevance, Participation and Uncertainty in Academic–Practitioner Knowledge Networks

Making and mending your nets is concerned to examine, from an actor–network theory perspective, how the relevance debate concerning research and teaching is a significant non‐human actor in the development and management of industry–academic networks associated with UK business schools. By significant, we do not imply the most important because it is only one of many human and non‐human actors that may arouse interest, be problematized, enrolled and/or mobilized for such networks to become ‘obligatory passage points’ and ultimately irreversible collective assemblies. The paper then utilizes actor–network theory as a framework for examining our primary empirical research on academic–practitioner knowledge networks – nets that require a continuous making and mending in managing relevance, participation and uncertainty. We argue that the actor–network framework is more compatible than alternative knowledge diffusion or transfer models with the data we have collected on academic–practitioner knowledge networks in the UK. In accounting for the dynamic instability and precariousness of knowledge networks, it avoids raising false expectations about business knowledge and its relevance or effectiveness. If knowledge in the physical sciences and engineering unfolds slowly and unevenly in the face of many disputes, disruptions and setbacks, as actor–network theory has claimed, then how much more likely is this to be the case in the social sciences? Consequently there should be no expectations of one‐to‐one, direct causal chains between knowledge production and application, as some business school critics seemingly demand.     

Between a rock and a hard place: Internal- and external institutional fit of MNE subsidiary political strategy in contexts of institutional upheaval

We investigate how subsidiaries' political capabilities in emerging markets are not just shaped by their home- or host country institutions, but by both simultaneously - presenting a dilemma for subsidiaries of multinational enterprises (MNEs) in host countries. Subsidiaries need to develop CPA that simultaneously “fit” parent company requirements and “external fit” requirements in relation to the host environment. Achieving this dual fit is particularly difficult in volatile host contexts, where the value of political capabilities changes rapidly. Subsidiaries face a dilemma because the easily transferable capabilities – that draw on parent resources – lose value due to their decreasing “external fit” with the host country's volatile institutional environment. Conversely, the most valuable relational political capabilities lack “internal fit,” as they may not be legitimate in the home environment. To understand how firms deal with this dilemma, we develop a typology of political capabilities that takes into account their transferability/stickiness and their dynamic institutional contingency in the host country. Our study shows that MNEs - even from institutionally very different economies - can successfully transfer political capabilities to develop effective CPA in a volatile political environment. Yet, as political risk becomes discontinuous, this strategy may reach its limits.     

Forms of Network Resource: Knowledge Access and the Role of Inter‐Firm Networks

The leveraging of inter‐firm networks is increasingly considered to be a strategic resource that can potentially be shaped by managerial action. In recent years, scholars have turned to the concept of social capital to understand how the transfer of knowledge occurs within and across firms. However, this has resulted in an overstretching of the social capital concept. The aim of this paper is to refine and add specificity to the current broad application of the social capital concept. It is argued that although the social capital concept explains investments in networks based on a network logic relating to sociability and socialization, it does not explain investments in networks based on a logic relating to economic expectations. These expectations result in network participation that is more calculative than networks containing social capital. The paper introduces the notion of ‘network capital’ to explain the resources contained within inter‐firm networks that do not necessarily equate with the type of trust and obligations associated with social capital. Network capital is defined as an investment in calculative relations through which firms gain access to knowledge to enhance expected economic returns. It is argued that while network capital can be strategically managed, particularly to influence knowledge flow, the nature of social capital is such that it is very difficult to manage. It is concluded that the network capital–social capital framework opens a number of avenues in terms of future research, especially in relation to the extended resource‐based view of the firm and theories of open innovation.     

Regional integration and the regional risk paradox

How does regional economic integration affect the risk exposure of multinational enterprises (MNEs)? Investigating firm regionalization patterns, I uncover evidence of the regional risk paradox: as MNEs regionalize to exploit the lower risk environment offered by regional economic integration initiatives, they ultimately increase their regional risk exposure by deepening their commitment and embeddedness in regional business networks. Informed by the Theory of the Regional Multinationals and by theories of regional integration, I employ a social network lens to investigate the evolving structure of business relationships in regions governed by different regional integration frameworks. I then explore the implications of these evolving relationship network structures on the transformation of regional business risk. I find that moderately integrated regions lower transaction costs to moderately low levels, thus encouraging moderate MNE regionalization. This leads to moderate MNE embeddedness in loosely coupled regional business networks and a moderate increase in regional risk. By contrast, deeply integrated regions lower regional administrative distance to very low levels and encourage intense MNE regionalization. This leads to deep MNE embeddedness in tightly coupled regional business networks and a significant increase in regional risk.     

The international training of expatriates in Western subsidiaries of emerging multinational enterprises: A knowledge-based perspective

There is a considerable gap in academic theoretical literature about the international training of expatriates in multinational enterprises (MNEs). While the majority of research has focused on developed (Western) multinationals operating in developing countries, very limited research has been conducted on emerging multinational enterprises (EMNEs) operating in developed countries and the expatriates who work in them. In this study, we explore the international training of expatriates in Indian MNEs from the information technology industry operating in Australia to examine how they provide training to their expatriate staff who are sent on international assignments. We collected qualitative data in the form of multiple case studies via interviews with senior executives based in the Australian subsidiaries. Our findings reveal that Indian IT MNEs provide a variety of centralised training programmes for their managerial and technical expatriates and use training as a key instrument to leverage and transfer home country knowledge to their Australian subsidiaries. We also found that each stakeholder involved in the training process plays a distinct role in the knowledge transfer process, which allows Indian EMNEs to integrate the training with their people-centred business model to deliver IT services in host countries.     

Knowledge management in multinational firms

Multinationals by their very nature are network firms. They are therefore able to leverage their networks to effectively manage dispersed knowledge assets. They do this by tapping into a number of local clusters to assimilate and integrate knowledge. However, knowledge traffic is almost always two-way, so that clusters have much to gain from both intentional and unintentional knowledge outflows from MNEs. Thus, MNEs can serve as conduits between clusters, so that their network knowledge contributes to the health of all the clusters in which it operates.     

Unveiling the Canvas Ceiling: A Multidisciplinary Literature Review of Refugee Employment and Workforce Integration

Increasing levels of displacement and the need to integrate refugees in the workforce pose new challenges to organizations and societies. Extant research on refugee employment and workforce integration currently resides across various disconnected disciplines, posing a significant challenge for management scholars to contribute to timely and relevant solutions. In this paper, we endeavour to address this challenge by reviewing and synthesizing multidisciplinary literature on refugee employment and workforce integration. Using a relational framework, we organize our findings around three levels of analysis – institutional, organizational and individual – to outline the complexity of factors affecting refugees’ employment outcomes. Based on our analysis, we introduce and elaborate on the phenomenon of the canvas ceiling ? a systemic, multilevel barrier to refugee workforce integration and professional advancement. The primary contributions of this paper are twofold. First, we map and integrate the multidisciplinary findings on the challenges of refugee workforce integration. Second, we provide management scholarship with a future research agenda to address the knowledge gap identified in this review and advance practical developments in this domain.     

Off to Plan or Out to Lunch? Relationships between Design Characteristics and Outcomes of Strategy Workshops

Strategy workshops, also known as away days, strategy retreats and strategic ‘off‐sites’, have become widespread in organizations. However, there is a shortage of theory and evidence concerning the outcomes of these events and the factors that contribute to their effectiveness. Adopting a design science approach, in this paper we propose and test a multidimensional model that differentiates the effects of strategy workshops in terms of organizational, interpersonal and cognitive outcomes. Analysing survey data on over 650 workshops, we demonstrate that varying combinations of four basic design characteristics – clarity of goals and purpose, routinization, stakeholder involvement and cognitive effort – predict differentially these three distinct types of outcomes. Calling into question conventional wisdom on the design of workshops, we discuss the implications of our findings for integrating further the strategy process, strategy‐as‐practice and strategic cognition literatures, to enrich understanding of the factors that shape the nature and influence of contemporary strategic planning activities more generally.