Headquarters involvement, socialization, and entrepreneurial behaviors in MNC subsidiaries

Decreton, Benoit and Nell, Phillip C. and Stea, Diego (2019) Headquarters involvement, socialization, and entrepreneurial behaviors in MNC subsidiaries. Long Range Planning, 52 (101839). pp. 1-12. ISSN 0024-6301


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Headquarters of multinational corporations can be involved in their subsidiaries and help with the development and transfer of innovative ideas. However, headquarters involvement might not always be desired or needed, and it can thus be perceived as interference with local activities, potentially reducing local willingness to go the extra mile. We address the lack of knowledge about subsidiary manager behavior by answering the following question: How does headquarters involvement influence the proactive behavior of subsidiary managers to push for new and innovative ideas? Using data from 120 top managers in subsidiaries of multinational corporations, we find that the negative relationship between headquarters involvement and their subsidiary managers' support for initiatives can be reduced when socialization mechanisms such as a common corporate culture or rotation programs are put in place.

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. This version is in press and a corrected proof. Access to the published version requires a subscription. Please cite this article as: Decreton, B., Long Range Planning (2018), https://doi.org/10.1016/j.lrp.2018.05.005
Keywords: Headquarters involvement; subsidiary initiatives; entrepreneurial behaviors; socialization
Divisions: Departments > Welthandel > International Business > Nell
Version of the Document: Draft
Depositing User: Gertraud Novotny
Date Deposited: 27 Jun 2018 10:19
Last Modified: 13 Aug 2019 13:41
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/86290/
URI: https://epub.wu.ac.at/id/eprint/6373


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