IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03632783.html
   My bibliography  Save this paper

Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies

Author

Listed:
  • Akiebe Humphrey Ahworegba

    (Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

  • Christophe Estay

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie, LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM])

  • Myropi Garri

    (University of Portsmouth)

Abstract

Purpose To illustrate how threats of institutional duality (ID) incidence subsidiaries confront are converted to opportunities, by conceptualizing how subsidiaries attain operational legitimacy at both their headquarters (HQs) and host countries. Design/methodology/approach Using a systematic literature review, the authors build on institutional theories by analyzing the ID literature along its structure, main processes and outcomes. The authors configure frameworks of both HQ control systems and host countries' institutional threats, showing how subsidiaries contingently navigate across them using configuration, differentiation and avoidance strategies. Findings The authors' findings show that "foresighted" subsidiaries attain operational legitimacy through configuration, differentiation and avoidance of threats incidental to ID, by strategizing along certain formal and informal institutional variables including legal, sociocultural and technical factors. Originality/value The authors propose "structural configuration of ID incidence" and "subsidiary path to legitimacy" frameworks. The former configures how the interaction between HQ and host countries' variables constitute ID incidence threats. The latter highlights how "foresighted" subsidiaries use configuration, differentiation and avoidance strategies to attain operational legitimacy.

Suggested Citation

  • Akiebe Humphrey Ahworegba & Christophe Estay & Myropi Garri, 2020. "Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies," Post-Print hal-03632783, HAL.
    • Handle: RePEc:hal:journl:hal-03632783
    DOI: 10.1108/JOCM-02-2020-0040
    Note: View the original document on HAL open archive server: https://cnam.hal.science/hal-03632783
    as

    Download full text from publisher

    File URL: https://cnam.hal.science/hal-03632783/document
    Download Restriction: no
    File URL: https://libkey.io/10.1108/JOCM-02-2020-0040?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. Tony Edwards & Paul Edwards & Anthony Ferner & Paul Marginson & Olga Tregaskis, 2010. "Multinational Companies and the Diffusion of Employment Practices from Outside the Country of Origin," Management International Review, Springer, vol. 50(5), pages 613-634, October.
    2. Emeka Nwankwo & Nelson Phillips & Paul Tracey, 2007. "Social Investment through Community Enterprise: The Case of Multinational Corporations Involvement in the Development of Nigerian Water Resources," Journal of Business Ethics, Springer, vol. 73(1), pages 91-101, June.
    3. Ute Stephan & Lorraine M Uhlaner & Christopher Stride, 2015. "Institutions and social entrepreneurship: The role of institutional voids, institutional support, and institutional configurations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(3), pages 308-331, April.
    4. repec:rai:joeems:doi:10.1688/jeems_2014_01_panibratov is not listed on IDEAS
    5. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(2), pages 129-130, November.
    6. Festing, Marion & Sahakiants, Ihar, 2013. "Path-dependent evolution of compensation systems in Central and Eastern Europe: A case study of multinational corporation subsidiaries in the Czech Republic, Poland and Hungary," European Management Journal, Elsevier, vol. 31(4), pages 373-389.
    7. Paul Almeida & Anupama Phene, 2004. "Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 847-864, August.
    8. Timothy M. Devinney & David F. Midgley & Sunil Venaik, 2000. "The Optimal Performance of the Global Firm: Formalizing and Extending the Integration- Responsiveness Framework," Organization Science, INFORMS, vol. 11(6), pages 674-695, December.
    9. Yaprak, Attila & Karademir, Bahattin, 2011. "Emerging market multinationalsâ role in facilitating developed country multinationalsâ regional expansion: A critical review of the literature and Turkish MNC examples," Journal of World Business, Elsevier, vol. 46(4), pages 438-446, October.
    10. Mark Fenton-O'Creevy & Paul Gooderham & Odd Nordhaug, 2008. "Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(1), pages 151-166, January.
    11. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2017. "Asymmetric Growth and Institutions in an Interdependent World," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1245-1305.
    12. Simon Collinson & Alan M Rugman, 2008. "The regional nature of Japanese multinational business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 215-230, March.
    13. Alfred M Jaeger, 1983. "The Transfer of Organizational Culture Overseas: An Approach to Control in the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(2), pages 91-113, June.
    14. Koveshnikov, Alexei & Barner-Rasmussen, Wilhelm & Ehrnrooth, Mats & Mäkelä, Kristiina, 2012. "A framework of successful organizational practices in Western multinational companies operating in Russia," Journal of World Business, Elsevier, vol. 47(3), pages 371-382.
    15. K Kim & J-H Park & J E Prescott, 2003. "The global integration of business functions: a study of multinational businesses in integrated global industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 327-344, July.
    16. Panibratov, Andrei & Latukha, Marina, 2014. "Obtaining international results through partnerships: evidence from Russian MNEs in the IT sector," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 19(1), pages 31-57.
    17. Nell, Phillip C. & Puck, Jonas & Heidenreich, Stefan, 2015. "Strictly limited choice or agency? Institutional duality, legitimacy, and subsidiaries’ political strategies," Journal of World Business, Elsevier, vol. 50(2), pages 302-311.
    18. Kang, Yuanfei & He, Xinming, 2018. "Institutional Forces and Environmental Management Strategy: Moderating Effects of Environmental Orientation and Innovation Capability," Management and Organization Review, Cambridge University Press, vol. 14(3), pages 577-605, September.
    19. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 243-243, December.
    20. Julian M Birkinshaw & Allen J Morrison, 1995. "Configurations of Strategy and Structure in Subsidiaries of Multinational Structure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 729-753, December.
    21. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, March.
    22. D. Eleanor Westney, 1993. "Institutionalization Theory and the Multinational Corporation," Palgrave Macmillan Books, in: Sumantra Ghoshal & D. Eleanor Westney (ed.), Organization Theory and the Multinational Corporation, chapter 3, pages 53-76, Palgrave Macmillan.
    23. Julian Birkinshaw & Robert Nobel & Jonas Ridderstråle, 2002. "Knowledge as a Contingency Variable: Do the Characteristics of Knowledge Predict Organization Structure?," Organization Science, INFORMS, vol. 13(3), pages 274-289, June.
    24. Kim, Changsu & Kim, Jungkeun & Marshall, Roger & Afzali, Hajir, 2018. "Stakeholder influence, institutional duality, and CSR involvement of MNC subsidiaries," Journal of Business Research, Elsevier, vol. 91(C), pages 40-47.
    25. Hoffman, Richard C. & Munemo, Jonathan & Watson, Sharon, 2016. "International Franchise Expansion: The Role of Institutions and Transaction Costs," Journal of International Management, Elsevier, vol. 22(2), pages 101-114.
    26. Bandeira-de-Mello, Rodrigo & Fleury, Maria Tereza Leme & Aveline, Carlos Eduardo Stefaniak & Gama, Marina Amado Bahia, 2016. "Unpacking the ambidexterity implementation process in the internationalization of emerging market multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 2005-2017.
    27. Anirvan Pant & J Ramachandran, 2017. "Navigating identity duality in multinational subsidiaries: A paradox lens on identity claims at Hindustan Unilever 1959–2015," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(6), pages 664-692, August.
    28. Amy J Hillman & William P Wan, 2005. "The determinants of MNE subsidiaries' political strategies: evidence of institutional duality," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 322-340, May.
    29. Shaohua “Carolyn” Mu & Devi R. Gnyawali & Donald E. Hatfield, 2007. "Foreign subsidiaries’ learning from local environments: An empirical test," Management International Review, Springer, vol. 47(1), pages 79-102, February.
    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. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    2. Andrews, Daniel S. & Fainshmidt, Stav & Newburry, William & Parente, Ronaldo & Haensel, Kira, 2023. "What determines subunit integration in the multinational firm? A meta-analysis," Journal of International Management, Elsevier, vol. 29(6).
    3. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    4. Håkanson, Lars & Kappen, Philip, 2016. "Live and let die: A survival analysis of foreign R&D units in Swedish MNEs," International Business Review, Elsevier, vol. 25(6), pages 1185-1196.
    5. Beugelsdijk, Sjoerd & Jindra, Björn, 2018. "Product innovation and decision-making autonomy in subsidiaries of multinational companies," Journal of World Business, Elsevier, vol. 53(4), pages 529-539.
    6. Jan Hendrik Fisch & Bjoern Schmeisser, 0. "Phasing the operation mode of foreign subsidiaries: Reaping the benefits of multinationality through internal capital markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-33.
    7. Colakoglu, Saba & Yamao, Sachiko & Lepak, David P., 2014. "Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks," International Business Review, Elsevier, vol. 23(1), pages 91-101.
    8. Dixit Manjunatha Betaraya & Saboohi Nasim & Joy Mukhopadhyay, 2018. "Subsidiary Innovation in a Developing Economy: Towards a Comprehensive Model and Directions for Future Research," FIIB Business Review, , vol. 7(2), pages 109-125, June.
    9. Lunnan, Randi & Meyer, Klaus & Mudambi, Ram & Yang, Qin, 2023. "The impact of knowledge and financial resource flows for MNE strategy: A typology of subsidiary roles," International Business Review, Elsevier, vol. 32(6).
    10. Jan Hendrik Fisch & Bjoern Schmeisser, 2020. "Phasing the operation mode of foreign subsidiaries: Reaping the benefits of multinationality through internal capital markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1223-1255, October.
    11. Breunig, Karl Joachim & Kvålshaugen, Ragnhild & Hydle, Katja Maria, 2014. "Knowing your boundaries: Integration opportunities in international professional service firms," Journal of World Business, Elsevier, vol. 49(4), pages 502-511.
    12. Barnard, Helena & Mamabolo, Anastacia, 2022. "On religion as an institution in international business: Executives’ lived experience in four African countries," Journal of World Business, Elsevier, vol. 57(1).
    13. Schnyder, Gerhard & Sallai, Dorottya, 2020. "Between a rock and a hard place: Internal- and external institutional fit of MNE subsidiary political strategy in contexts of institutional upheaval," Journal of International Management, Elsevier, vol. 26(2).
    14. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    15. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2017. "Gone are the creatures of yesteryear? On the diffusion of technological capabilities in the ‘modern’ MNC," Journal of World Business, Elsevier, vol. 52(1), pages 1-16.
    16. Meyer, Klaus E. & Su, Yu-Shan, 2015. "Integration and responsiveness in subsidiaries in emerging economies," Journal of World Business, Elsevier, vol. 50(1), pages 149-158.
    17. Beugelsdijk, Sjoerd & Nell, Phillip C. & Ambos, Björn, 2017. "When Do Distance Effects Become Empirically Observable? An Investigation in the Context of Headquarters Value Creation for Subsidiaries," Journal of International Management, Elsevier, vol. 23(3), pages 255-267.
    18. Petrou, Andreas P., 2015. "Arbitrariness of corruption and foreign affiliate performance: A resource dependence perspective," Journal of World Business, Elsevier, vol. 50(4), pages 826-837.
    19. Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz & Dörrenbächer, Christoph, 2012. "The impact of increases in subsidiary autonomy and network relationships on performance," International Business Review, Elsevier, vol. 21(6), pages 1158-1172.
    20. Luis Alfonso Dau & Elizabeth M Moore & William Newburry, 2020. "The grass is always greener: The impact of home and host country CSR reputation signaling on cross-country investments," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 154-182, June.

    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:hal:journl:hal-03632783. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.