Maximilian Palmié
Title
Prof. Dr.
Last Name
Palmié
First name
Maximilian
Email
maximilian.palmie@unisg.ch
ORCID
Phone
+41 71 224 72 36
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Item type:Publication, Creating Useful Subsidiary Competence by Appropriate Organizational Architecture(2012-06-07); ; Achieving a decentralized creation of internationally leveraged competence is an important, yet challenging task for many multinational corporations (MNCs). However, the literature provides few insights on the means by which parent firm managers can foster the creation of competence, which is useful to other MNC units, in the firm's subsidiaries. We develop an overarching framework, arguing that by setting the organizational architecture appropriately, parent firm managers can stimulate a subsidiary's self-interest in creating such competence. Testing hypotheses, which link three specific features of formal architecture (home-base augmenting mission, interfaces with other MNC units, subsidiary autonomy) to the extent to which a focal subsidiary creates such competence, with a unique sample of 287 subsidiaries strongly supports our arguments. We discuss implications for academia and practice.Type:conference paper