Morgan, Glenn and Hull Kristensen, Peer. (2006) The contested space of multinationals: Varieties of institutionalism, varieties of capitalism. HUMAN RELATIONS, 59 (11). pp. 1467-1490. ISSN 0018-7267

Full text not available from this repository.

Abstract

The article argues that institutionalist theory applied to multinationals focuses on the issue of institutional duality', that is, that within multinationals, actors are pressured to conform to the expectations of their home context whilst also being subjected to the transfer of practices from the home context of the MNC itself. This institutional duality leads to conflicts that can be labelled as forms of 'micropolitics'. The head office managers transfer practices, people and resources to subsidiaries in order to maintain control and achieve their objectives. Local subsidiaries have differential capacities to resist these transfers or to develop them in their own interests depending on their institutional context. The article distinguishes institutional contexts that produce 'Boy Scout' subsidiaries, doing what they are told and consequently allowing locally distinctive capabilities to be undermined and those that produce 'subversive strategists' which look to deepen their connection with the local context not the MNC itself. These processes are exacerbated by the demands of capital markets which impose performance requirements on MNCs and lead to continuous organizational restructuring. Head offices become stronger in their attempts to impose standards in all their subsidiaries. The consequences of these processes are that except for a few pockets of 'subversive strategists', multinationals produce subsidiary 'clones' with little ability to leverage the specific assets which the institutional context provides. As it is the subversive strategists that are best placed to be innovative, the problem for the MNC is how to manage this tension.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences
Divisions:	Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	HUMAN RELATIONS
Publisher:	SAGE PUBLICATIONS LTD
ISSN:	0018-7267
Date:	November 2006
Volume:	59
Number:	11
Number of Pages:	24
Page Range:	pp. 1467-1490
Identification Number:	10.1177/0018726706072866
Status:	Peer Reviewed
Publication Status:	Published
URI:	http://wrap.warwick.ac.uk/id/eprint/32610

Data sourced from Thomson Reuters' Web of Knowledge

Request changes to a record

Actions (login required)

View Item