Resource title

MNC Organizational Form and Subsidiary Motivation Problems - Controlling Intervention Hazards in the Network MNC

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Resource description

The MNC literature treats the (parent) HQ as entirely benevolent with respect to theirperceived and actual intentions when they intervene at lower levels of the MNC.However, HQ may intervene in subsidiaries in ways that demotivate subsidiaryemployees and managers (and therefore harm value-creation). This may happen even ifsuch intervention is benevolent in its intentions. We argue that the movement awayfrom more traditional hierarchical forms of the MNC and towards network MNCsplaced in more dynamic environments gives rise to more occasions for potentiallyharmful intervention by HQ. Network MNCs should therefore be particularly careful toanticipate and take precautions against “intervention hazards.” Following earlierresearch, we point to the role of normative integration and procedural justice, but arguethat they also serve to control harmful HQ intervention (and not just subsidiaryopportunism).

Resource author

Kirsten Foss, Nicolai J. Foss, Phillip C. Nell

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Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/8380

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