OS_Charter_Capability_Alignment.pdf (431.33 kB)
Managerial coordination challenges in the alignment of capabilities and new subsidiary charters in MNEs
journal contribution
posted on 2023-06-09, 11:56 authored by Martin Friesl, Raphael SilberzahnSubsidiary-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
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Publication status
- Published
File Version
- Accepted version
Journal
Organization StudiesISSN
0170-8406Publisher
SAGE PublicationsExternal DOI
Issue
12Volume
38Page range
1709-1731Department affiliated with
- Business and Management Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2018-02-07First Open Access (FOA) Date
2018-02-07First Compliant Deposit (FCD) Date
2018-02-07Usage metrics
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