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Interpretive Frames as the Organization’s “Mirror”: From Espoused Values to Social Integration in MNEs

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Abstract

Many multinational enterprises (MNEs) seek to strengthen their competitive positions through internal integration. Socialization is a key integration mechanism to leverage advantages across MNEs’ geographically dispersed organizational units. Parent organizations often communicate a set of values intended to guide action throughout the MNE, referred to as espoused values, to initiate a socialization process. However, we have limited insights into how espoused values are endorsed and subsequently contribute to MNE integration. Through a case study, we analyze how espoused values are interpreted by the foreign subsidiaries and influence subsequent subsidiary behavior. Our findings suggest that the socialization process is complex, where the local context and perceptions of headquarter nationality provide the frames for interpretation. We identify that even though the espoused values may differ in their operationalization in local contexts, they can still contribute to MNE integration. This study contributes to existing MNE literature by conceptualizing the role of interpretive frames and the endorsement of values in achieving integration through espoused values.

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Acknowledgments

The authors thank Alain Verbeke, Øystein Fjeldstad, the anonymous reviewers, and the participants in the MIR special issue pre-publication workshop in November 2012 for their valuable comments.

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Authors and Affiliations

  1. Haskayne School of Business, University of Calgary, Calgary, Canada

    Birgitte Grøgaard

  2. BI Norwegian Business School, Oslo, Norway

    Helene Loe Colman

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  1. Birgitte Grøgaard
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  2. Helene Loe Colman
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Correspondence to Birgitte Grøgaard.

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Grøgaard, B., Colman, H.L. Interpretive Frames as the Organization’s “Mirror”: From Espoused Values to Social Integration in MNEs. Manag Int Rev 56, 171–194 (2016). https://doi.org/10.1007/s11575-015-0273-4

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  • DOI: https://doi.org/10.1007/s11575-015-0273-4

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