Towards the Micro-Foundations of Organizational Practice Adoption in the MNC: The Role of Core Self-Evaluation

The adoption of organizational practices is elementary in the creation of sustained competitive advantage for the multinational corporation (MNC). While prior studies have largely focused on the institutional context, in this study, we explore the role of the subsidiary managers' personality in the adoption of practices mandated by corporate headquarters to subsidiary units. Using a unique data set, we analyze 130 practice adoption cases in a large European MNC and find that managers' core self-evaluation (CSE) is a significant factor with respect to the implementation and internalization of organizational practices. In addition, the empirical findings suggest that socialization of subsidiary managers moderates the relationships between managers' personality and both dimensions of organizational practice adoption. Drawing attention to the role of individuals in organizational practice adoption, the study contributes to the emerging literature on the micro-foundations of knowledge transfers in large organizations.