AIB 2012 Conference Proceedings - Academy of International ...

SUNDAY
Session: 1.1.14 - Interactive
Track: 5 - MNC Management and Organization
Collaboration in MNE Networks
Presented On: July 1, 2012 - 09:00-10:15
Chair: Jeremy Clegg, University of Leeds
Coordination at the Edge of the Empire: The Delegation of Headquarters Functions through Regional
Management Mandates
Eva Andrea Alfoldi, University of Manchester
Jeremy Clegg, University of Leeds
Sara McGaughey, University of Strathclyde
In this paper, we conceptualise the role of headquarters as a set of functions distributed across the
multinational enterprise. Specifically, we investigate the phenomenon of delegating headquarters functions to
local subsidiaries in the form of regional management mandates (RMMs), a new concept not addressed in prior
research. Our work contributes to the literature by constructing a comprehensive typology of headquarters
functions performed at various levels of the multinational enterprise and by developing propositions about the
benefits and costs of using regional management mandates, drawing on different theoretical perspectives and
an empirical case study. Our findings indicate that the use of regional management mandates offers several
benefits for the MNE: a balance between integration and responsiveness at levels below the efficient scale for
dedicated regional headquarters; the exploitation of local operational expertise and embeddedness on a
regional level; and relieving headquarters of the burden of monitoring remote peripheral agents. At the same
time, we also uncover risks and dangers associated with the use of regional management mandates. Our study
develops a strong foundation for future research on the roles and functions of headquarters, and provides a
novel perspective on how headquarters functions are enacted at the regional level. (For more information,
please contact: Eva Andrea Alfoldi, University of Manchester, United Kingdom: eva.alfoldi@mbs.ac.uk)
Understanding Tacit Knowledge Transfer in Multinational Corporations: A Study in Chinese Business Cultural
Context
Juana Du, Poly-technic Institute of New York University
This research discusses how national business culture influence tacit knowledge transfer in multinational
corporations in Chinese cultural context. In particular, how Chinese cultural values are related to different
resources and different ways of learning are discussed. It proves that the two cultural value dimensions—
uncertainty avoidance and power distance—have significant effects on tacit knowledge transfer in different
ways. Both low uncertainty avoidance and low power distance increase the ease and amount of communication,
and facilitate tacit knowledge transfer in multinational corporations. The data approve that role in organizations,
as an am important resource of external tacit knowledge learning, functions as the channel of external tacit
knowledge transfer and flow storage. It is also found that internal learning and external learning are mutually
dependent in multinational corporations. However, in the Chinese cultural context, internal source plays a more
important role than external source, and internal learning of tacit knowledge takes place more easily than
external learning. (For more information, please contact: Juana Du, Poly-technic Institute of New York
University, USA: xunniedu@gmail.com)
A Marriage Metaphor Model for Sociocultural Integration in International Mergers and Acquisitions: A Critical
Review and Integration of the Literature
Daniel Rottig, Florida Gulf Coast University
AIB 2012 Conference Proceedings
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