Low-intensity conflict in multinational corporations

Abstract

Purpose-Inter-unit conflict in MNCs is an important and well-researched theme. However, while most studies have focused on open conflicts acknowledged by both headquarters and subsidiaries, much less research has dealt with low intensity conflicts caused by power asymmetries. Still, low intensity conflicts can be highly damagingnot least because they are rarely resolved. Thus, we set out to identify why and in which form low intensity conflict develops, as perceived by low power subsidiary representatives, in the interaction between MNC headquarters and subsidiaries. Design/methodology/approach-We use a qualitative approach to understand low intensity conflict relying on 170 interviews in four Danish MNCs. Findings-We describe antecedents of low intensity conflict and identify four types of actions by HQ representatives that can lead to the development of such conflicts, namely ignoring, bypassing, assuming, and educating. Originality/value-Very few studies have dealt with low intensity conflictnot least in international business research. We argue that the study of low intensity conflict in MNCs can provide us with relevant, novel knowledge of MNC functioning.

Highway to Hell? Managing expatriates in crisis

“…First, there may be conflict with host-country nationals (HCNs) in the subsidiary organization. Workplace conflict is the extent to which one individual feels obstructed or irritated by others on the job (Lauring, Andersen, Storgaard & Kragh, 2017). Research in the domain of close relationships clearly shows that interpersonal conflict has negative consequences for mental and physical well-being that could cause the individual to act improperly (De Dreu & Weingart, 2003).…”

Fuel exports, aid and terrorism

“…In particular, studies on the identification of antecedents for, and consequences of low intensity inter-unit conflict in Multinational Companies (MNCs) (Lauring et al, 2017), the exploration of how and why MNCs proactively address the concern of uncertainty by valuing locational ambidexterity in decision making (Huang & John, 2017), the relevance of political risk (law and order, internal conflict and ethnic tension) in determining foreign direct and indirect investments in developing countries (Al-Khouri, 2015), strategies of MNCs in which terrorism is factored-in as a fundamental threat (Suder & Czinkota, 2005), macroeconomic models of political risk assessments (Alon & Martin, 1998) and the effects of risks (political, economic, default and credit) on the allocative efficiency of global financial markets (Ramcharran, 2003).…”

Exploiting emerging market complementarities

“…This enables Naspers to navigate new regions and get first hand insight into difficult institutional environments from local entrepreneurs. Relying on local teams also mitigates the potential sources of conflict that may arise between the parent company and subsidiaries when the latter feel undermined in their activities (Lauring et al , 2017). Businesses therefore have a smoother transition into new markets, and in parallel, Naspers is able to navigate emerging markets, in an expedited fashion, through localised knowledge: “ It was about identifying entrepreneurs in their markets who understood the market well and were able to execute in those particular markets ” (Respondent 4).…”