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  • OS Charter Capability Alignment

    Rights statement: The final, definitive version of this article has been published in the Journal, Organization Studies, 38 (12), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Organization Studies page: http://journals.sagepub.com/home/oss on SAGE Journals Online: http://journals.sagepub.com/

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Managerial coordination challenges in the alignment of capabilities and new subsidiary charters in MNEs

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>1/12/2017
<mark>Journal</mark>Organization Studies
Issue number12
Volume38
Number of pages23
Pages (from-to)1709-1731
<mark>State</mark>Published
Early online date6/04/17
<mark>Original language</mark>English

Abstract

Subsidiary-level change requires the alignment of subsidiary charters and capabilities. Yet, the mechanisms through which the alignment of charters and capabilities unfolds are not yet well understood. In this paper, we investigate alignment from the perspective of managerial coordination. Drawing on a longitudinal study of a global IT firm, we identify three coordination mechanisms (charter-, experience-, and interaction-based coordination). By tracing the shifts in these coordination mechanisms over time and by specifying the implications of each mechanism for capability level change, we explain how managerial coordination influences alignment via subsidiary level capability change as well as alignment via the potential renegotiation of charters. This also allows us to provide new insights into situations of misalignment by explaining that particular mechanisms of coordination may become a source of decoupling between subsidiary actions and HQ mandates and may also result in capability level inertia. Moreover, while prior research has already acknowledged the role of interaction-based coordination for capability level change we show how and why such a mechanism of coordination emerges.

Bibliographic note

The final, definitive version of this article has been published in the Journal, Organization Studies, 38 (12), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Organization Studies page:
http://journals.sagepub.com/home/oss on SAGE Journals Online:
http://journals.sagepub.com/