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/
Accepted author manuscript, 431 KB, PDF document
Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Managerial coordination challenges in the alignment of capabilities and new subsidiary charters in MNEs
AU - Friesl, Martin
AU - Silberzahn, R
N1 - 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/
PY - 2017/12/1
Y1 - 2017/12/1
N2 - 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.
AB - 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.
KW - capability development
KW - coordination
KW - micro-foundations
KW - multinational enterprise
KW - subsidiary change
KW - subsidiary charter
U2 - 10.1177/0170840617693271
DO - 10.1177/0170840617693271
M3 - Journal article
VL - 38
SP - 1709
EP - 1731
JO - Organization Studies
JF - Organization Studies
SN - 0170-8406
IS - 12
ER -