Daniel S. Andrews , Stav Fainshmidt , William Newburry , Ronaldo Parente , Kira Haensel
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引用次数: 0
Abstract
Although subunit integration matters to performance outcomes in the multinational firm, the determinants of integration remain unclear. We distinguish between formal integration—the centralization of strategic decision-making and the formalization of policies and procedures and informal integration through socialization toward shared goals and a cohesive identity. We argue that corporate parents' implementation of these integration mechanisms is informed by conditions internal and external to the multinational firm. Drawing on 154 empirical studies encompassing 35,752 foreign subunits over 34 years, we find that a locally oriented subunit strategy negatively affects centralization and socialization. Host country constraints positively affect formalization and socialization. These findings are consistent with some theoretical expectations but contradictory to others. We enrich the nomological network of subunit integration, offering novel insights regarding the internal and external drivers of structural heterogeneity within and between multinational firms. Our findings thus inform theory of the complex nature of managerial decisions in multinational firms.
期刊介绍:
The Journal of International Management is devoted to advancing an understanding of issues in the management of global enterprises, global management theory, and practice; and providing theoretical and managerial implications useful for the further development of research. It is designed to serve an audience of academic researchers and educators, as well as business professionals, by publishing both theoretical and empirical research relating to international management and strategy issues. JIM publishes theoretical and empirical research addressing international business strategy, comparative and cross-cultural management, risk management, organizational behavior, and human resource management, among others.