Detalles del recurso
Alexandria - University of St.Gallen (Switzerland)
Descripción: In theory, MNCs can outcompete other firms because the decentralized development of useful competences that are leveraged by other units in the MNC group allows them to generate new competences and to create competitive advantage. What is less known, however, is by which organizational means the parent firm of an MNC can induce the creation of useful subsidiary competence By 'useful', we refer to the effect that competence that a focal subsidiary creates is actively sought and used leveraged by other organizational units in the MNC (i.e., both other subsidiaries and the parent firm).
Our paper advances theory and managerial practice by responding to this knowledge gaps. It studies which organizational design choices managers can make (and why) to foster the creation of useful subsidiary competence that is leveraged by other organizational units within the MNC. Our overarching theoretical argument is that parent firm managers can make design choices about the firm's organizational architecture, which comprises both its explicitly mandated formal structure (e.g. incentive systems, information processing structures, authority relationships) and emergent informal structure (e.g. organizational culture, social networks)
We develop and test hypotheses for a selection of such design measures and test them with a unique sample of 287 international subsidiaries. The findings yield strong support for our theoretical arguments. Thus, our study can make a number of important contributions for academia and executives.
Autor(es): Marcus Matthias Keupp - Maximilian Palmie - Oliver Gassmann -