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Creating Useful Subsidiary Competence by Appropriate Organizational Architecture
Type
conference paper
Date Issued
2012-06-07
Abstract
Achieving a decentralized creation of internationally leveraged competence is an important, yet challenging task for many multinational corporations (MNCs). However, the literature provides few insights on the means by which parent firm managers can foster the creation of competence, which is useful to other MNC units, in the firm's subsidiaries. We develop an overarching framework, arguing that by setting the organizational architecture appropriately, parent firm managers can stimulate a subsidiary's self-interest in creating such competence. Testing hypotheses, which link three specific features of formal architecture (home-base augmenting mission, interfaces with other MNC units, subsidiary autonomy) to the extent to which a focal subsidiary creates such competence, with a unique sample of 287 subsidiaries strongly supports our arguments. We discuss implications for academia and practice.
Language
English
Keywords
Organizational Architecture
Competence Creation
Multinational Corporation
Subsidiary
Strategic Autonomy
Operational Autonomy
HSG Classification
contribution to scientific community
Refereed
Yes
Start page
1
End page
8
Pages
8
Event Title
SMS Strategic Management Society Special Conference 2012
Event Location
Singapore
Event Date
07.-09.06.2012
Subject(s)
Division(s)
Eprints ID
221065