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An empirical evaluation of conflict in MNC matrix structure firms

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  • Wolf, Joachim
  • Egelhoff, William G.

Abstract

According to existing theory, MNCs with matrix structures are supposed to have more intra-organizational conflict than non-matrix firms. The present study uses a sample of 82 German MNCs to evaluate and reject this general hypothesis. Only MNCs with a product division by geographical region matrix structure support the hypothesis. Other types of matrix structure which contain a functional division dimension tend to have levels of intra-organizational conflict similar to elementary structures. The paper develops and proposes new logic and two propositions that explain which types of matrix structure lead to greater conflict and which do not. As more MNCs consider using matrix structures to implement increasingly complex strategies, a better understanding of conflict in matrix MNCs is important.

Suggested Citation

  • Wolf, Joachim & Egelhoff, William G., 2013. "An empirical evaluation of conflict in MNC matrix structure firms," International Business Review, Elsevier, vol. 22(3), pages 591-601.
    • Handle: RePEc:eee:iburev:v:22:y:2013:i:3:p:591-601
    DOI: 10.1016/j.ibusrev.2012.08.005
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    References listed on IDEAS

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    Cited by:

    1. Benoit Decreton & Henrik Dellestrand & Philip Kappen & Phillip C. Nell, 2017. "Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms," Management International Review, Springer, vol. 57(6), pages 855-878, December.
    2. Ambos, Björn & Kunisch, Sven & Leicht-Deobald, Ulrich & Schulte Steinberg, Adrian, 2019. "Unravelling agency relations inside the MNC: The roles of socialization, goal conflicts and second principals in headquarters-subsidiary relationships," Journal of World Business, Elsevier, vol. 54(2), pages 67-81.
    3. Xufei Ma & Andrew Delios & Shu Yu, 2020. "Innovation in MNC’S strategy and structure: the (re) emergence of host country headquarters in large emerging markets," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 609-632, September.
    4. V. V. Brinza & Yu. Yu. Kostyukhin & I. V. Fadeeva, 2017. "Potential of modeling techniques organizational systems with matrix structure and the possibility of expanding their information base," Russian Journal of Industrial Economics, MISIS, issue 3.
    5. Krzysztof Gos, 2015. "The Key Advantages and Disadvantages of Matrix Organizational Structures (Kluczowe zalety i ograniczenia macierzowych struktur organizacyjnych)," Research Reports, University of Warsaw, Faculty of Management, vol. 2(19), pages 66-83.
    6. Nicolay Worren, 2017. "The matrix as a transitory form: the evolution of FMC technologies 2001–2016," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-14, December.

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