The More, The Merrier? How a subsidiary’s Organizational Identification with the MNE Influences Its Initiative

David H. Weng, Hsiang Lin Cheng*

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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Abstract

How does a subsidiary's organizational identification influence its tendency to demonstrate initiative? In this study, we argue that a subsidiary's organizational identification with the MNE may affect its initiative via two mechanisms: subsidiary motivation and headquarters screening. On the one hand, subsidiary motivation mechanism suggests that a subsidiary's organizational identification with an MNE may affect its tendency to demonstrate initiative. On the other hand, the headquarters screening mechanism maintains that headquarters may rely on organizational identification to support or dismiss the subsidiary's projects. In light of the two mechanisms, we propose that a subsidiary's organizational identification may first increase its initiative, but after a certain point, the effect will diminish, ultimately leading to an inverted U-shaped relation. Building on this central argument, we also examine the boundary conditions at the subsidiary and MNE levels that may shape the proposed effect. Findings based on a sample of Taiwanese MNEs support these arguments. Our findings contribute to the literature by highlighting the role that a subsidiary's organizational identification plays in its initiative.
Original languageEnglish
Article number101860
Pages (from-to)1-16
Number of pages16
JournalLong Range Planning
Volume52
Issue number4
Early online date27 Nov 2018
DOIs
Publication statusPublished - Aug 2019

Keywords

  • Headquarters screening
  • Headquarters-subsidiary relations
  • Organizational identification
  • Subsidiary initiative
  • Subsidiary motivation

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