Managing interrelated tensions in headquarters-subsidiary relationships: The case of a multinational hybrid organization
Journal
Journal of International Business Studies
Type
case review (law)
Date Issued
2020-02-26
Author(s)
Abstract
While all multinational organizations face the challenge of managing tensions between local integration and global responsiveness, they are increasingly required to pursue additional, often paradoxical, objectives-such as social and commercial goals. However, we know little about how these tensions at the core of the MNC strategy interact. Based on an inductive qualitative study of four headquarters-subsidiary relationships in a Latin American Multinational Hybrid Organization, we develop a model showing the interplay of multiple tensions and management approaches to address them. This allows us to contribute to research on subsidiary roles, which we found to differ depending on how multiple tensions are addressed. Furthermore, we add to the literature on hybridity in multinational organizations by pointing out how regional differences between units of a single organization unfold. Finally, we provide some practical recommendations for the management of multinational hybrid organizations.
Language
English
Keywords
headquarters-subsidiary roles and relations
organizational paradox
hybrid organization
integration and responsiveness
social-commercial tensions
case theoretic approaches
HSG Classification
contribution to scientific community
Refereed
Yes
Volume
51
Start page
906
End page
932