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
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.
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.
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.
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
- 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