Learning in multinational enterprises as the socially embedded translation of practices

Abstract

Formatted: Swedish Sweden 2 PRACTICE TRANSFER IN MNES AS THE SOCIALLY EMBEDDED TRANSLATION OF PRACTICES ABSTRACTPurpose -With a few exceptions the mainstream literature on learning in MNEs has shown little concern for the transformational nature and the social constitution of learning. We address this gab by drawing on Scandinavian institutionalism, social learning perspectives and comparative institutionalism.Design/methodology/approach -A comparative case study was conducted of two subsidiaries of the same MNE. The subsidiaries received similar practices from HQ but displayed contrasting learning outcomes.Findings -It is shown that learning outcomes differed based on the varying extent to which practices were translated, which depends on the participation of local actors. The difference in participation pattern in turn is rooted in differences in the institutional context of the two subsidiaries. Originality/value -This paper highlights that MNE practice transfer rests on the translation of the practice content to the local context, and that subsidiary-level learning processes may be institutionally embedded thus establishing a link between subsidiary learning and the macro-level context. As such, this paper both illustrates the value of social learning perspectives and highlights the relevance of the work of institutionalists for understanding MNE learning processes. Research limitations/implications

Translation of relational practices in an MNC subsidiary: Symmetrical, asymmetrical and substitutive strategies

“…We advance current thinking about the mutual constitution of transfer, translation and transformation. In doing so, we extend Becker-Ritterspach et al's (2010) finding that the translation of managerial practices represents transformations of context, showing how translation takes different shapes, depending on whether the subsidiary manager or instructor's norms, understanding of processes, and teleo-affective structures are understood, agreed upon and enacted. Thus, as shown by the case study used below, each of these sense-making dimensions of teleo-affective structures yields different translation strategies among local middle managers.…”

Business Systems Theory and Employment Relations

“…Secondly, and consequently, this highlights the ways in which specific institutional settings may contain elements or resources that diverge from the archetypal institutional regimes (Lane and Wood, 2012;Schneiberg, 2007;Wood et al, 2009). Thirdly, it draws attention to the role of actors in shaping institutions, and, hence, how institutions may become the subject of contestation (Becker-Ritterspach et al, 2010;Crouch and Voelzkow, 2009;Djelic and Quack, 2003;Morgan, 2007b;Streeck, 2009;Whitley, 2007). Finally, as the primary unit of analysis within much of the recent business-systems literature is the firm or the industry level rather than the national institutional setting, the approach, arguably, opens up a richer depiction of firms and the challenges that they face compared to the portrayal of firms in the VoC perspective (Casper and Whitley, 2004;Morgan, 2007a).…”

“…This can, for instance, involve an analysis of the conditions under which firms can draw on international resources to overcome institutional deficiencies to be competitive in particular industries (Allen and Whitely, 2012). Alternatively, it could cover a close examination of the ways in which firms and other actors are able to shape their local institutional settings in ways that do not necessarily adhere closely to the ideal type, but that are designed to enhance competitiveness (Becker-Ritterspach et al, 2010;Casper and Whitley, 2004;Crouch et al, 2009).…”

A Taxonomy of Potential Contributions of the Host Country National Local Liaison Role in Global Knowledge Management

“…Various scholars recently have called for a refocus in research in international management by being more inclusive of the needs and contributions of HCNs in the success of MNC foreign operations (Becker‐Ritterspach, Saka‐Helmhout, & Hotho, ; Massingham, ; Tarique, Schuler, & Gong, ; Toh & DeNisi, , , ; Van Bakel, Gerritsen, & Van Oudenhoven, ; Vance, Vaiman, & Andersen, 2009; Vo, ). One line of past HCN‐focused research also has examined potentially useful staff localization decisions where HCN executives eventually, through effective professional development efforts, replace expatriates in heading and controlling foreign operations (Lam & Yeung, ; Vance, Paik, & Chow, ).…”