Multinational enterprise regional management centres: Characteristics and performance

Chakravarty, Dwarka; Hsieh, Ying‐Ying; Schotter, Andreas; Beamish, Paul W.

doi:10.1016/j.jwb.2016.12.011

Cited by 33 publications

(49 citation statements)

References 63 publications

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“…La filial trampolín en el contexto de la teoría del proceso de internacionalización En el estudio de la empresa multinacional existe un renovado interés por el análisis de las filiales como auténticas protagonistas de la internacionalización (Birkinshaw, Bouquet y Ambos, 2007;Chakravarty et al, 2017). Las filiales, lejos de ser herramientas al servicio de la casa matriz con un rol determinado y definido por esta, pueden configurarse como unidades semi autónomas con sus propios recursos y poder utilizables para estimular cambios, innovaciones y crecimiento dentro de la red corporativa.…”

Section: Marco Conceptualunclassified

“…Algunos datos macroeconómicos dan soporte a estas afirmaciones. Por un lado, la inversión directa europea en los mercados latinoamericanos está dominada en gran medida por España, que representa el 29 % de la inversión europea en nuevos proyectos en la región y el 29 % del total de fusiones y adquisiciones europeas por valor en el período -2017(ECLAC, 2018. Por otro lado, España es uno de los principales destinos para la inversión directa latinoamericana, siendo el segundo país receptor de esta inversión fuera de la región después de Estados Unidos.…”

Section: Introductionunclassified

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La expansión interregional en Iberoamérica: la creación de valor a través de filiales trampolín

Barber¹,

Villar²,

Botella³

2019

Revista ICE

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A TRAVÉS DE FILIALES TRAMPOLÍNRecientemente, desde el sector empresarial han surgido diferentes afirmaciones destacando el valor intangible que España podría ofrecer como «trampolín» en el proceso de expansión interregional de las multinacionales europeas hacia Latinoamérica. En este estudio dotamos de contenido teórico y empírico a esta realidad, ofreciendo una visión general de las características de las filiales trampolín mediante una muestra de 188 filiales localizadas en España. Con este trabajo pretendemos aportar directrices a la práctica empresarial que faciliten la legitimidad en sus inversiones en otras regiones, especialmente en países emergentes donde existe un mayor riesgo de pérdida de valor. Interregional expansion in Iberoamerica: value creation through springboard subsidiariesRecently, from the business sector different claims have emerged highlighting the intangible value that Spain could offer as a "springboard" in the process of interregional expansion of European multinationals towards Latin America. In this study we provide theoretical and empirical content to this reality, offering a general overview of the profile of the springboard subsidiary and its characteristics through a sample of 188 subsidiaries located in Spain. We provide guidance to business practice facilitating legitimacy in their investments in foreign regions, particularly in emerging countries where there is a greater risk of loss of value.Palabras clave: filial trampolín, multinacionales, Latinoamérica, expansión interregional, conocimiento experiencial.

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Section: Marco Conceptualunclassified

Section: Introductionunclassified

La expansión interregional en Iberoamérica: la creación de valor a través de filiales trampolín

Barber¹,

Villar²,

Botella³

2019

Revista ICE

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“…One means by which the MNC deals with such situations is through alternate structural arrangements at an intermediate level, such as regional headquarters, which are typically tasked with the development, implementation, coordination, and/or control of business strategies within a specific region (Enright, 2005). As mentioned, regional HQ can possess a more general administrative mandate, more selective and specialized functional mandates over a region, or both (Chakravarty et al, ; Enright, 2005; Lehrer & Asakawa, ). In our particular case, the SBS has both.…”

Section: Conceptual Backgroundmentioning

confidence: 99%

Co‐parenting through subsidiaries: A model of value creation in the multinational firm

Barber

Villar

Madhok³

2017

Global Strategy Journal

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Research Summary We analyze a novel way to configure and manage multinational networks and propose a model of “co‐parenting,” characterized by the sharing of parenting roles and distribution of responsibilities between two units. We develop our argument around the notion of the springboard subsidiary, an operating subsidiary that assumes headquarters’ functions since it shares greater institutional closeness with both the headquarters’ country as well as with the host region. Based upon qualitative data, our inductive model revolves around three stages: establishment, consolidation, and maturity, each of which reflects distinct roles and loci of decision making among the three actors involved: headquarters, springboard subsidiary, and local subsidiary. Overall, our study sheds distinct light on when and how headquarters add value by matching parenting to context. Managerial Summary In expanding across regions, multinational firms often face a situation where neither the local unit nor the corporate headquarters possesses the competencies to be at the competitive forefront. This article analyzes a model of interregional expansion of multinational firms by using springboard subsidiaries—operating subsidiaries that can serve as a bridge between headquarters and local subsidiaries since they share institutional and business ties with both. We develop a model in which some parenting functions—coordination, control, and knowledge creation—are distributed between headquarters and the springboard subsidiary along an accumulative process of capabilities. By demonstrating how a springboard subsidiary can help align control to context, the model offers a tool for strategic analysis that helps avoid potential value destruction by headquarters.

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“…There is growing recognition that the MNE involves more than just the CHQsubsidiary agency relationship, and this calls for a greater understanding of multiple principal-agent relationships (Arthurs et al, 2008;Hoenen and Kostova, 2015). For example, RHQs are important intermediary units, premised on the objective of managing the flow of information from a given region to CHQ (Chakravarty et al, 2017;Ghobadian, Rugman and Tung, 2014;Piekkari, Nell and Ghauri, 2010). Regional headquarters are expected to perform a dual agency role in that they control regional operations (principal), but they are also controlled by CHQ (agent) (Deutsch, Keil and Laamanen, 2011).…”

Section: Agency Theory Perspectivementioning

confidence: 99%

“…Subsidiaries build their influence on critical resources, whereas RHQ possesses a formal HQ mandate, hence shifting the CHQ-RHQ relationship to a principalprincipal dyad (Ciabuschi, Dellestrand and Holm, 2012;Steinberg and Kunisch, 2016;Ward and Filatotchev, 2010). This type of relationship differs from a traditional hierarchal one and represents a horizontal or lateral dyad (O'Donnell, 2000), the difference being that CHQ focuses on holistic strategic adaptation and renewal across the MNE, whereas RHQ is an intermediary structure, legally controlled by CHQ (Alfoldi, Clegg and McGaughey, 2012;Chakravarty et al, 2017).…”

Section: Principal-to-principal Relationshipmentioning

confidence: 99%

Regional Headquarter’s Dual Agency Role: Micro‐political Strategies of Alignment and Self‐interest

Conroy

Collings

Clancy

2017

British J of Management

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The increased research focus on the networked perspective of the multinational enterprise (MNE) reflects a greater delegation of responsibility from corporate headquarters (CHQ) to subsidiary and intermediary units such as regional headquarters (RHQ). This shift has increased the intensity of political interactions between key actors within the MNE. Despite the recent rise in studies on the micro‐political perspective of the MNE to date, little empirical work has explored this issue in the context of the CHQ–RHQ relationship. Drawing insights from agency theory and micro‐politics, the authors focus on the context in which RHQs develop micro‐political strategies in order to manage the flow and exchange of knowledge with CHQ. They show how RHQ may exhibit a ‘dual agency’ role when dealing with CHQ, in that it is characterized as a principal and agent, each requiring different micro‐political knowledge strategies. As a principal, RHQ will develop micro‐political knowledge strategies to increase alignment with CHQ. As an agent, RHQ develops micro‐political knowledge strategies to pursue its self‐interests. Having identified different RHQ agency roles, the authors develop a conceptual model that outlines how alignment and self‐interest‐seeking behaviours from RHQ are manifest through different micro‐political knowledge strategies in its agency relationship with CHQ.

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Multinational enterprise regional management centres: Characteristics and performance

Cited by 33 publications

References 63 publications

La expansión interregional en Iberoamérica: la creación de valor a través de filiales trampolín

La expansión interregional en Iberoamérica: la creación de valor a través de filiales trampolín

Co‐parenting through subsidiaries: A model of value creation in the multinational firm

Regional Headquarter’s Dual Agency Role: Micro‐political Strategies of Alignment and Self‐interest

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