Session 149

Management and Coordination of Multinationals

Track G

Date: Monday, October 5, 2015

Track X

Time: 11:15 – 12:30

Paper

Room: Governor's Square 12


Session Chair:

  • Joan E Ricart, IESE Business School

Title: Coordination Difficulty and Performance in the Offshoring Context: The Moderating Effect of Governance Mode and Experience

Authors

  • Niccolo Pisani, University of Amsterdam
  • Kannan Srikanth, Singapore Management University
  • Joan E Ricart, IESE Business School

Abstract: Western companies have increasingly relocated parts of their value chain to offshore locations in the recent past. Extant research documents that offshoring exposes firms to challenges associated with coordinating geographically dispersed work. In this paper, we argue that vertical integration mitigates the negative effect of coordination difficulty between onsite and offshore locations and the performance of the offshoring venture. However, with experience, firms are able to manage coordination difficulty without recourse to unified governance. We test our theory by analyzing survey data from 709 offshoring implementations executed by 245 multinational companies based in the U.S. and Western Europe.

Title: Effective Strategy-making in Multinational Subsidiaries

Authors

  • Torben Juul Andersen, Copenhagen Business School
  • Ulf Andersson, Mälardalen University
  • Maximilian Palmié, University of St. Gallen
  • Marcus Matthias Keupp, Swiss Federal Institute of Technology

Abstract: We outline commonalities between studies of subsidiary decentralization and autonomous strategy-making in the international business and strategic management fields. This suggests that corporate headquarters should engage in strategy-making processes that provide a combination of formal direction for global efficiencies and autonomy for effective local responses. Strategic guidance from headquarters frames subsidiary decisions in line with corporate priorities and distributed decision power coupled with informal exchange of information facilitates strategic responses in tune with local market requirements. We identify some important nuances in the integration-responsiveness conundrum supported by an empirical study of 351 multinational subsidiaries. We discuss the implications for multinational strategy practice and suggest future research venues to investigate strategy-making in multinational firms.

Title: Governance Challenges from Shifting Roles in Offshoring/Outsourcing Networks: Bounded Reliability, Bounded Rationality and Influence

Authors

  • Sara McGaughey, Griffith University
  • Randi Lunnan, BI Norwegian Business School

Abstract: We argue that heightened governance challenges of distributed networks in offshoring/outsourcing relate to bounded rationality and reliability. The ability to exert influence over others in the network – and thereby reduce bounded rationality and reliability – depends on the network structure, the specific role performed and task characteristics. In this paper, we explore how a ship builder addresses governance challenges as it moves from a fully integrated business model to one that involves offshore outsourcing. Most interestingly, in this new model the firm no longer has the formal contract with the client and, hence, is no longer the ‘network hub’ despite remaining the ‘brand holder’. This loss of hub status closes off some avenues for influence, and prompts a search for novel solutions.

Title: Subsidiary Evolution: The Role of Coopetition Competences and Influence Mechanisms for Subsidiary Role Development

Authors

  • Esther Tippmann, University College Dublin
  • Pamela Sharkey Scott, National University of Ireland at Maynooth
  • Donal O'Brien, Dublin City University

Abstract: This paper shifts away from the predominant focus of investigating subsidiary-parent interactions to explore the critical role of international interdependence across MNC units on subsidiary evolution. Drawing on nine case studies, we examine subsidiary strategies to influence role development. We uncover the critical role of coopetition competence enabling subsidiaries to balance between co-operative and competitive dynamics with sister units. This meta-competence infuses all other strategies of subsidiary role development, enabling subsidiaries to know what approach is appropriate and when and how to shift from co-operating to competing and vice versa. Theorizing further on seminal frameworks of subsidiary evolution, we challenge assumptions that autonomy and the pursuit of entrepreneurial initiatives are necessary and theorize that coopetition competences are an alternative mechanism for subsidiary role development in situations of internal interdependency.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 32: Microfoundations of international strategic management: Opportunism, trust, and bounded reliability
Sun: 09:45 – 11:00
Session 279: Formal theory in strategy - A primer
Sun: 11:15 – 12:30
Session 33: Methodological challenges in publishing international strategy research
Sun: 16:15 – 17:30
Session 209: Institutions and Emerging Markets
Sun: 17:45 – 00:00
Session 315: Global Strategy Business Meeting
Mon: 08:00 – 09:15
Session 126: Entry Mode & Cross-Border Acquisitions
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Mon: 13:45 – 15:00
Session 128: Emerging Markets
Mon: 16:45 – 18:00
Session 151: Networks and Collaborative Arrangements
Tue: 08:00 – 09:15
Session 129: Foreign Direct Investments
Tue: 11:00 – 12:15
Session 127: Institutional Context
Tue: 14:15 – 15:30
Session 266: Offshoring
Tue: 15:45 – 17:00
Session 130: International Diversification
Session 150: Location and Geography
Tue: 17:30 – 18:45
Session 208: Internationalization Strategies and Performance

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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