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Maximilian Palmié
Title
Prof. Dr.
Last Name
Palmié
First name
Maximilian
Email
maximilian.palmie@unisg.ch
Phone
+41 71 224 72 36
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1 - 3 of 3
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PublicationPull the Right Levers: Creating Internationally ‘Useful' Subsidiary Competence by Organizational ArchitectureWe study the effect of formal organizational architecture on the extent to which a focal subsidiary creates competence that is "useful" to other units of a multinational corporation (MNC). Elements of formal organizational architecture represent levers by which parent firm and subsidiary managers can realize their intentions. Building on motivation theory, we argue that an appropriate organizational architecture stimulates a subsidiary's motivation to create internationally "useful" competence so that its extent of competence creation will increase. We develop and empirically test hypotheses for three specific organizational elements, viz.: a home-base augmenting mission, interfaces with other MNC units, and the subsidiary's strategic and operational autonomy. Unique survey data from 287 subsidiaries provide intimate insights into the internal structure of MNCs and strongly support our account. We close by discussing the implications of our study for the academic literature, management practice, and future research.Type: journal articleJournal: Long Range PlanningVolume: 47Issue: 1-2
Scopus© Citations 16 -
PublicationCreating Useful Subsidiary Competence by Appropriate Organizational Architecture( 2012-06-07)
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PublicationOrganizational Architecture and the Realization of Competitive Advantages from MultinationalityToday, multinational corporations (MNCs) account for a substantial share of economic activity in most industries and countries. The appeal of a multinational organization can be explained by the associated competitive advantages, which entail prospects of superior performance: MNCs can create knowledge and competence in geographically dispersed subsidiaries, transfer knowledge from a focal subsidiary to other subsidiaries and to the parent firm, and integrate subsidiaries into their intrafirm network. While these advantages from multinationality have been highlighted frequently, many scholars also observed that we know little about the means by which MNCs can actually realize them. This cumulative dissertation addresses these knowledge gaps. To this end, it focuses on the effects that organizational architecture (OA) exerts on the above advantages. By adopting this focus, it responds to the calls which have identified OA as an important, yet neglected area in this context. Parent firm executives can set elements of OA, especially formal OA (such as subsidiary autonomy and mandates), to realize their intentions. Besides an introductory chapter, this thesis consists of four manuscripts that examine the influence of selected elements of formal OA on (a) a focal subsidiary's integration into the MNC's intrafirm network, (b) the extent to which its knowledge is successfully transferred to other subsidiaries, (c) the extent to which a focal subsidiary transfers knowledge to the parent firm, and (d) the extent to which it creates competence that can be leveraged internationally. Three of these manuscripts test their theoretical predictions empirically by applying both regression analyses and structural equation modeling (SEM) to a sample of 287 subsidiaries. The results strongly support the arguments of this thesis. Overall, this dissertation suggests that MNCs can realize the competitive advantages from multinationality when an appropriate OA is implemented. Further, by setting the OA appropriately, MNCs should be able to realize several of these advantages simultaneously. These insights do not only help close important gaps in our theoretical understanding. Rather, they can also yield beneficial advice to management practice because so far, many MNCs struggle with realizing these advantages.