{"title":"Practice coordination by principles: a contemporary MNC approach to coordinating global practices","authors":"Alexander Kristiansen, R. Schweizer","doi":"10.1108/cpoib-04-2020-0027","DOIUrl":null,"url":null,"abstract":"\nPurpose\nIn the mainstream international business literature on multinational corporations (MNCs), an authoritative central headquarter (HQ) that transfers standardised practices to its subsidiaries remains the norm. This study aims to explore how MNCs coordinate their management practices through principles.\n\n\nDesign/methodology/approach\nThe paper draws on empirical findings from a qualitative in-depth single case study based on evidence-rich qualitative data including observations from how a high-tech MNC headquartered in Sweden coordinates its development practices.\n\n\nFindings\nAn alternative informal coordination approach (i.e. coordination by principles) is identified. Additionally, antecedents and implications of the approach are presented.\n\n\nPractical implications\nCoordination by Principles may facilitate the internalisation of practices and be a feasible compromise between context adaptation and traditional standardisation, particularly for MNCs with highly heterogeneous research and development operations.\n\n\nOriginality/value\nThis paper highlights the importance of acknowledging that firm practices often are based on management ideas that HQs adopt to prevent loss of legitimacy. As such, this study contributes to the scarce literature that critically questions the assumption that HQs solely transfer practices to subsidiaries to improve subsidiary efficiency and performance.\n","PeriodicalId":46124,"journal":{"name":"Critical Perspectives on International Business","volume":" ","pages":""},"PeriodicalIF":2.0000,"publicationDate":"2021-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Critical Perspectives on International Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/cpoib-04-2020-0027","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
In the mainstream international business literature on multinational corporations (MNCs), an authoritative central headquarter (HQ) that transfers standardised practices to its subsidiaries remains the norm. This study aims to explore how MNCs coordinate their management practices through principles.
Design/methodology/approach
The paper draws on empirical findings from a qualitative in-depth single case study based on evidence-rich qualitative data including observations from how a high-tech MNC headquartered in Sweden coordinates its development practices.
Findings
An alternative informal coordination approach (i.e. coordination by principles) is identified. Additionally, antecedents and implications of the approach are presented.
Practical implications
Coordination by Principles may facilitate the internalisation of practices and be a feasible compromise between context adaptation and traditional standardisation, particularly for MNCs with highly heterogeneous research and development operations.
Originality/value
This paper highlights the importance of acknowledging that firm practices often are based on management ideas that HQs adopt to prevent loss of legitimacy. As such, this study contributes to the scarce literature that critically questions the assumption that HQs solely transfer practices to subsidiaries to improve subsidiary efficiency and performance.
期刊介绍:
In recent years, the business practices and management philosophies of global enterprises have been subject to increasingly close scrutiny by commentators in the fields of journalism and academia. Such scrutiny has been motivated by a growing desire to examine the nature of globalisation, its impact on specific communities and its benefits for society as a whole. Coverage includes, but is not restricted to, issues of: ■Globalization ■Production and consumption ■Economic change ■Societal change ■Politics and power of organizations and governments ■Environmental impact