Organizational Architecture and Knowledge Transfer Success in Multinational Firms: An Agency Theory Perspective
Type
conference paper
Date Issued
2012-10-06
Author(s)
Abstract
We offer a theory and empirical test of the influence of organizational architecture on inter-subsidiary knowledge transfer success within a multinational corporation (MNC). Framing our arguments in an agency theory perspective, we suggest that the parent firm, by appropriately setting the MNC's organizational architecture, can harness the subsidiaries' self-interest to make such knowledge transfers succeed. We build hypotheses on four specific aspects of formal organizational architecture (autonomy, subsidiary mandates, formal cross-unit interfaces between subsidiaries, and formal interfaces with the local environment) and test them with a unique sample of 287 subsidiaries and novel psychometric measures that provide intimate insights into an MNC's internal structure. We find broad support for the proposed theory and highlight the implications of our research for academia and management practice.
Language
English
Keywords
Organizational Architecture
Knowledge Transfer Success
Multinational Corporation
Subsidiary
HSG Classification
contribution to scientific community
Refereed
Yes
Start page
1
End page
9
Pages
9
Event Title
32nd Strategic Management Societiy (SMS) Annual International Conference
Event Location
Prague
Event Date
06.-09.10.2012
Subject(s)
Division(s)
Eprints ID
221067