Headquarters Involvement, Socialization, and Entrepreneurial Behaviors in Mnc Subsidiaries

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Abstract

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.
Original languageEnglish
Article number101839
JournalLong Range Planning
Volume52
Issue number4
Number of pages12
ISSN0024-6301
DOIs
Publication statusPublished - Aug 2019

Bibliographical note

Published online: 9. June 2018

Keywords

  • Headquarters involvement
  • Subsidiary initiatives
  • Entrepreneurial behaviors
  • Socialization
  • MNC

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