Now showing 1 - 4 of 4
  • Publication
    Organizational Control and Goal Conflicts in Headquarters-Subsidiary Relationships: An Agency Theory Perspective
    (Academy of International Business, 2015-06-27) ; ; ;
    Mudambi, Ram
    ;
    Kiyak, Tunga
    In this study, we investigate the interaction of socialization, goal conflicts and behavioral control in headquarters-subsidiary relationships. We take a modern agency perspective and test assumptions of relationship multiplicity, within-subsidiary heterogeneity and multiple principals in an empirical model using 131 observations that cover the full configuration of a European insurance corporation. Our findings suggest that socialization reduces goal conflicts between central and local organizational units, contingent upon task programmability and influence of a second principal. Further, we qualify that goal conflicts mediate the relationships between socialization and behavioral controls only under certain circumstances. The primary contribution of this study is that it advances agency theory to more complex conceptualizations for applications in headquarters-subsidiary relationships.
  • Publication
    Organizational Practice Adoption in the MNC: The Role of Managers' Core Self-Evaluations
    (Academy of Management, 2015-08-07) ; ;
    Although the adoption of organizational practices by subsidiaries is a key concern in multinational corporations (MNCs), research on the individuals involved in practice adoption is lacking. Despite calls in the MNC literature for investigations of the psychological foundations of managers' behavior, such investigations are rare and have been complicated by difficulties in obtaining intimate assessments from managers. Building on personality research, we propose that subsidiary managers' core self-evaluations (CSE) positively influence their practice-adoption behavior. Consistent with personality and organizational control research, we also posit that formal and informal controls play contingent roles. Our analysis of a unique dataset of individuals involved in 130 practice-adoption cases within one European MNC offers large support for our hypotheses.
  • Publication
    The Impact of Core Self-Evaluations on Organizational Practice Adoption in the Multinational Corporation
    The adoption of organizational practices is known to be elementary in the creation of sustained competitive advantage for the multinational corporation (MNC). In this study, we explore the role of the subsidiary managers' personality in the adoption of practices mandated by a corporate headquarters to subsidiary units in a large European MNC. We analyzed 130 cases of practice adoption a large European MNC and found that managers' core self-evaluation (CSE) is a significant factor with respect to the implementation of practices. In addition, the empirical findings suggest that the organizational context moderates the relationship between managers' personality and practice adoption. The study contributes to the emerging literature on the role of individual's personality in practice adoption and the microfoundations of knowledge transfers in large organizations.
  • Publication
    Towards the Micro-Foundations of Organizational Practice Adoption in the MNC: The Role of Core Self-Evaluation
    (Academy of International Business, 2014-06-24) ; ;
    The adoption of organizational practices is elementary in the creation of sustained competitive advantage for the multinational corporation (MNC). While prior studies have largely focused on the institutional context, in this study, we explore the role of the subsidiary managers' personality in the adoption of practices mandated by corporate headquarters to subsidiary units. Using a unique data set, we analyze 130 practice adoption cases in a large European MNC and find that managers' core self-evaluation (CSE) is a significant factor with respect to the implementation and internalization of organizational practices. In addition, the empirical findings suggest that socialization of subsidiary managers moderates the relationships between managers' personality and both dimensions of organizational practice adoption. Drawing attention to the role of individuals in organizational practice adoption, the study contributes to the emerging literature on the micro-foundations of knowledge transfers in large organizations.