IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v40y2003i3p617-641.html
   My bibliography  Save this article

The Social Construction of Contextual Rationalities in MNCs: An Anglo‐German Comparison of Subsidiary Choice

Author

Listed:
  • Mike Geppert
  • Karen Williams
  • Dirk Matten

Abstract

ABSTRACT This paper seeks to examine empirically the extent to which actors in subsidiaries of multinational companies (MNCs) are able to exercise some choice in the face of global pressures from the MNC headquarters (HQ). We argue that managerial practices in MNCs are not the result of a simple imposition of a global or a MNC organizational rationality but are subject to an interactive process, where differing contextual rationalities come into play. Using data from MNC subsidiaries in Britain and Germany, the paper compares the power resources and strategic choices of subsidiary level actors and shows the ways in which they seek to influence global strategy implementation as it affects local work systems. We investigate the different abilities of German and British managers to shape global restructuring processes in their local organizational contexts and conclude that national contexts impact on both the formulation of parent company strategies via a home country rationality and on the implementation of global strategies via a host country rationality. There are greater national barriers to a MNC policy of convergence based on standardized products and processes in Germany than in the UK.

Suggested Citation

  • Mike Geppert & Karen Williams & Dirk Matten, 2003. "The Social Construction of Contextual Rationalities in MNCs: An Anglo‐German Comparison of Subsidiary Choice," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 617-641, May.
    • Handle: RePEc:bla:jomstd:v:40:y:2003:i:3:p:617-641
    DOI: 10.1111/1467-6486.00354
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-6486.00354
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-6486.00354?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anthony Ferner, 2000. "The Underpinnings of 'Bureaucratic' Control Systems: HRM in European Multinationals," Journal of Management Studies, Wiley Blackwell, vol. 37(4), pages 521-540, June.
    2. Whittington, Richard & Mayer, Michael, 2000. "The European Corporation: Strategy, Structure, and Social Science," OUP Catalogue, Oxford University Press, number 9780199242085, Decembrie.
    3. Anthony Ferner & Matthias Varul, 2000. "‘Vanguard’ Subsidiaries and the Diffusion of New Practices: A Case Study of German Multinationals," British Journal of Industrial Relations, London School of Economics, vol. 38(1), pages 115-140, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matten, Dirk & Geppert, Mike, 2004. "Work systems in heavy engineering: the role of national culture and national institutions in multinational corporations," Journal of International Management, Elsevier, vol. 10(2), pages 177-198.
    2. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    3. Glenn Morgan, 2003. "Introduction," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 609-616, May.
    4. Anthony McDonnell & Jonathan Lavelle & Patrick Gunnigle, 2014. "Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy," Management International Review, Springer, vol. 54(3), pages 361-380, June.
    5. Edwards, Tony & Tempel, Anne, 2010. "Explaining variation in reverse diffusion of HR practices: Evidence from the German and British subsidiaries of American multinationals," Journal of World Business, Elsevier, vol. 45(1), pages 19-28, January.
    6. Tony Royle & Luis Ortiz, 2009. "Dominance Effects from Local Competitors: Setting Institutional Parameters for Employment Relations in Multinational Subsidiaries; a Case from the Spanish Supermarket Sector," British Journal of Industrial Relations, London School of Economics, vol. 47(4), pages 653-675, December.
    7. Colin Hales, 2005. "Rooted in Supervision, Branching into Management: Continuity and Change in the Role of First‐Line Manager," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 471-506, May.
    8. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    9. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2014. "Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness," International Business Review, Elsevier, vol. 23(1), pages 76-90.
    10. Jie Shen, 2007. "Approaches to International Industrial Relations in Chinese Multinational Corporations," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(4), pages 410-426.
    11. Said Elbanna & John Child, 2007. "The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision‐Making," Journal of Management Studies, Wiley Blackwell, vol. 44(4), pages 561-591, June.
    12. Obonyo Mark Ouche & David Odhiambo Oima & Moses Oginda, 2016. "Effect of Strategic Planning on Annual Income of National Sports Federations in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(5), pages 41-64, May.
    13. Goyer, Michel, 2002. "The transformation of corporate governance in France and Germany: The role of workplace institutions," MPIfG Working Paper 02/10, Max Planck Institute for the Study of Societies.
    14. Nicholas S. Argyres & Alfredo De Massis & Nicolai J. Foss & Federico Frattini & Geoffrey Jones & Brian S. Silverman, 2020. "History‐informed strategy research: The promise of history and historical research methods in advancing strategy scholarship," Strategic Management Journal, Wiley Blackwell, vol. 41(3), pages 343-368, March.
    15. Mitchell Larson & Gerhard Schnyder & Gerarda Westerhuis & John Wilson, 2011. "Strategic responses to global challenges: The case of European banking, 1973-2000," Business History, Taylor & Francis Journals, vol. 53(1), pages 40-62.
    16. Ees, Hans van & Bachmann, Reinhard, 2003. "Transition economics and trust building : a network perspective on E.U. enlargement," Research Report 03G06, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    17. Poulis, Konstantinos & Poulis, Efthimios & Plakoyiannaki, Emmanuella, 2013. "The role of context in case study selection: An international business perspective," International Business Review, Elsevier, vol. 22(1), pages 304-314.
    18. Raess, Damian & Wagner, Patrick, 2022. "South to north investment linkages and decent work in Brazil," Papers 1382, World Trade Institute.
    19. Martin Jes Iversen & Mats Larsson, 2011. "Strategic transformations in Danish and Swedish big business in an era of globalisation, 1973-2008," Business History, Taylor & Francis Journals, vol. 53(1), pages 119-143.
    20. Andrea Colli & Michelangelo Vasta, 2015. "Large and entangled: Italian business groups in the long run," Business History, Taylor & Francis Journals, vol. 57(1), pages 64-96, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:40:y:2003:i:3:p:617-641. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.