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Organizational identity work in MNE subsidiaries: Managing dual embeddedness

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Abstract

This paper adopts an organizational identity work perspective to examine how MNE subsidiaries manage dual embeddedness to strategically position themselves in both their local context and in the global MNE. Prior research suggests that although dual embeddedness provides benefits, it also brings challenges, as subsidiaries must effectively balance external pressures and expectations with internal ones. Through a qualitative case study of organizational identity work in the subsidiaries of a Norwegian MNE, we reveal the process through which subsidiary members manage dual embeddedness in their day-to-day work. We develop a model that conceptualizes organizational identity work in MNE subsidiaries as an ongoing process, one that enables the subsidiary to position itself as a legitimate actor across contexts, while reproducing the perceived tensions of dual embeddedness. This combination thus continually fuels organizational identity work. Our findings have both theoretical and managerial implications. We provide important theoretical insight into how MNE subsidiaries achieve flexibility to position themselves as globally and locally embedded. For managers, this implies that trying to remove the tensions of dual embeddedness – for instance, by privileging the global above the local – may hinder flexibility.

Résumé

Dans une perspective de travail sur l'identité organisationnelle, cet article vise à examiner comment les filiales des entreprises multinationales (Multinational enterprises – MNEs) gèrent le double encastrement pour se positionner stratégiquement à la fois dans leur contexte local et au sein de la MNE globale. La recherche précédente suggère que, bien que le double encastrement présente des avantages, il entraîne également des défis, car les filiales doivent équilibrer efficacement les pressions et les attentes externes avec celles internes. Sur la base d’une étude de cas qualitative du travail sur l'identité organisationnelle dans les filiales d'une MNE norvégienne, nous révélons le processus par lequel les membres des filiales gèrent le double encastrement dans leur travail quotidien. Nous développons un modèle qui conceptualise le travail sur l'identité organisationnelle dans les filiales des MNEs comme un processus continu, lequel permet à la filiale de se positionner comme un acteur légitime dans tous les contextes tout en reproduisant les tensions perçues du double encastrement. Cette combinaison alimente ainsi continuellement le travail sur l'identité organisationnelle. Nos résultats ont des implications à la fois théorique et managériale. Nous apportons une compréhension théorique importante sur la manière dont les filiales des MNEs obtiennent la flexibilité nécessaire pour se positionner en tant qu'acteurs encastrés aux niveaux global et local. Pour les managers, cela implique qu'essayer de supprimer les tensions du double encastrement – par exemple, en privilégiant le global sur le local – peut entraver la flexibilité.

Resumen

Este artículo académico adopta una perspectiva de trabajo de identidad organizacional para examinar cómo las filiales de las empresas multinacionales gestionan la doble integración para posicionarse estratégicamente tanto en su contexto local como en la multinacional global. Las investigaciones anteriores sugieren que, aunque la doble integración proporciona beneficios, también conlleva retos, ya que las filiales deben equilibrar eficazmente las presiones y expectativas externas con las internas. A través de un estudio de caso cualitativo sobre el trabajo de identidad organizativa en las filiales de una empresa multinacional noruega, revelamos el proceso a través del cual los miembros de las filiales gestionan la doble integración en su trabajo diario. Desarrollamos un modelo que conceptualiza el trabajo de identidad organizacional en las filiales de las EMN como un proceso continuo, que permite a la filial posicionarse como un actor legítimo en distintos contextos, al tiempo que reproduce las tensiones percibidas de la doble integración. Así, esta combinación refuerza continuamente el trabajo de identidad organizacionales. Nuestras conclusiones tienen implicaciones tanto teóricas como de gestión. Damos un importante aporte teórico sobre cómo las filiales de las empresas multinacionales logran la flexibilidad necesaria para posicionarse como integradas global y localmente. Para los gerentes, esto implica que tratar de eliminar las tensiones de la doble integración – por ejemplo, privilegiando lo global sobre lo local – puede obstaculizar la flexibilidad.

Resumo

Este artigo adota uma perspectiva de trabalho da identidade organizacional para examinar como subsidiárias de MNE gerenciam a dupla inserção para se posicionarem estrategicamente tanto em seu contexto local quanto na MNE global. Pesquisas anteriores sugerem que, embora a dupla inserção ofereça benefícios, ela também traz desafios, pois subsidiárias devem equilibrar efetivamente pressões e expectativas externas com as internas. Por meio de um estudo de caso qualitativo do trabalho de identidade organizacional nas subsidiárias de uma MNE norueguesa, revelamos o processo pelo qual membros de subsidiárias gerenciam a dupla inserção no seu trabalho diário. Desenvolvemos um modelo que conceitua o trabalho de identidade organizacional em subsidiárias de MNEs como um processo contínuo, que permite que a subsidiária se posicione como um ator legítimo em vários contextos, ao mesmo tempo que reproduz as tensões percebidas da dupla inserção. Essa combinação continuamente alimenta o trabalho de identidade organizacional. Nossas descobertas têm implicações tanto teóricas quanto gerenciais. Fornecemos relevantes insights teóricos sobre como subsidiárias de MNEs obtêm flexibilidade para se posicionarem como global e localmente inseridas. Para gerentes, isso implica que tentar remover as tensões da dupla inserção – por exemplo, ao privilegiar o global acima do local – pode dificultar a flexibilidade.

摘要

本文采用组​​织身份工作视角来研究跨国公司 (MNE) 子公司如何管理双重嵌入, 从而在其本地情境和全球MNE中战略性地定位自己。先前的研究表明, 虽然双重嵌入带来好处, 但也带来挑战, 因为子公司必须有效地平衡外部压力和内部压力期望。通过对挪威MNE子公司的组织身份工作的定性案例研究, 我们揭示了子公司成员在日常工作中管理双重嵌入的过程。我们开发了一个模型, 将MNE子公司的组织身份工作概念化为一个持续的过程, 使子公司能够将自己定位为跨情境的合法行为者, 同时重展双重嵌入的感知张力。因此, 这种组合不断推动组织身份工作。我们的研究结果具有理论和管理意义。我们就MNE子公司如何实现灵活性以将自己定位为既在全球又在本地嵌入提供了重要的理论见解。对于管理者来说, 这意味着试图消除双重嵌入的紧张局势– –例如, 通过将全球置于本地之上– –可能会阻碍灵活性。

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ACKNOWLEDGEMENTS

We thank Mary Jo Hatch for valuable feedback on a previous version of this paper. We also thank the case company for granting us access to their organization. This research is based on data from a larger research program, partially funded by the case company. These specific interviews have not previously been used in any published article.

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Colman, H.L., Grøgaard, B. & Stensaker, I.G. Organizational identity work in MNE subsidiaries: Managing dual embeddedness. J Int Bus Stud 53, 1997–2022 (2022). https://doi.org/10.1057/s41267-022-00563-1

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