University of Sussex
Browse
OS_Charter_Capability_Alignment.pdf (431.33 kB)

Managerial coordination challenges in the alignment of capabilities and new subsidiary charters in MNEs

Download (431.33 kB)
journal contribution
posted on 2023-06-09, 11:56 authored by Martin Friesl, Raphael Silberzahn
Subsidiary-level change requires the alignment of subsidiary charters and capabilities. Yet, the mechanisms through which the alignment of charters and capabilities unfolds are not yet well understood. In this paper, we investigate alignment from the perspective of managerial coordination. Drawing on a longitudinal study of a global IT firm, we identify three coordination mechanisms (charter-, experience-, and interaction-based coordination). By tracing the shifts in these coordination mechanisms over time and by specifying the implications of each mechanism for capability level change, we explain how managerial coordination influences alignment via subsidiary level capability change as well as alignment via the potential renegotiation of charters. This also allows us to provide new insights into situations of misalignment by explaining that particular mechanisms of coordination may become a source of decoupling between subsidiary actions and HQ mandates and may also result in capability level inertia. Moreover, while prior research has already acknowledged the role of interaction-based coordination for capability level change we show how and why such a mechanism of coordination emerges. ABSTRACT FROM AUTHOR

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Organization Studies

ISSN

0170-8406

Publisher

SAGE Publications

Issue

12

Volume

38

Page range

1709-1731

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2018-02-07

First Open Access (FOA) Date

2018-02-07

First Compliant Deposit (FCD) Date

2018-02-07

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC