IDEAS home Printed from https://ideas.repec.org/p/hig/wpaper/65-man2022.html
   My bibliography  Save this paper

Anticipated Trajectories Of Development In Global Industries And The Evolution Of Corporate Parenting Styles Of Multinational Corporations

Author

Listed:
  • Igor Gurkov

    (National Research University Higher School of Economics)

  • Michael J. Morley

    (University of Limerick (Limerick, Ireland))

Abstract

World Investment Report 2020 by UNCTAD identified several possible trajectories of development for many industries, namely re-shoring, regionalization, diversification, and replication. We argue that those trajectories of development may result in changes to prevailing corporate parenting styles and may also lead to the emergence of less common parenting styles. We present a typology of corporate parenting styles and outline likely changes to these styles arising from the different developmental trajectories and the major actors of the changes in corporate parenting styles. Although many of the anticipated changes may be pursued by corporate headquarters, a combination of powerful subsidiaries putting bottom-up pressure on corporate headquarters, along with powerful owners, capable of imposing requirements on top management teams and generating top-down pressure, may enact new corporate parenting styles

Suggested Citation

  • Igor Gurkov & Michael J. Morley, 2022. "Anticipated Trajectories Of Development In Global Industries And The Evolution Of Corporate Parenting Styles Of Multinational Corporations," HSE Working papers WP BRP 65/MAN/2022, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:65/man2022
    as

    Download full text from publisher

    File URL: https://wp.hse.ru/data/2022/09/21/1737132911/65MAN2022.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kostova, Tatiana & Marano, Valentina & Tallman, Stephen, 2016. "Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research," Journal of World Business, Elsevier, vol. 51(1), pages 176-184.
    2. Phookan, Himadree & Sharma, Revti Raman, 2021. "Subsidiary power, cultural intelligence and interpersonal knowledge transfer between subsidiaries within the multinational enterprise," Journal of International Management, Elsevier, vol. 27(4).
    3. Hsi-Mei Chung & Sven Dahms & Pao T. Kao, 2021. "Emerging Market Multinational Family Business Groups and the Use of Family Managers in Foreign Subsidiaries," Management International Review, Springer, vol. 61(1), pages 57-89, March.
    4. Roth, Kendall & Nigh, Douglas, 1992. "The effectiveness of headquarters-subsidiary relationships: The role of coordination, control, and conflict," Journal of Business Research, Elsevier, vol. 25(4), pages 277-301, December.
    5. Peter J. Buckley, 2011. "International Integration and Coordination in the Global Factory," Management International Review, Springer, vol. 51(2), pages 269-283, April.
    6. Shams, Riad & Vrontis, Demetris & Belyaeva, Zhanna & Ferraris, Alberto & Czinkota, Michael R., 2021. "Strategic agility in international business: A conceptual framework for “agile” multinationals," Journal of International Management, Elsevier, vol. 27(1).
    7. Conroy, Kieran M. & Collings, David G., 2016. "The legitimacy of subsidiary issue selling: Balancing positive & negative attention from corporate headquarters," Journal of World Business, Elsevier, vol. 51(4), pages 612-627.
    8. Anne-Wil Harzing & Markus Pudelko, 2016. "Do We Need to Distance Ourselves from the Distance Concept? Why Home and Host Country Context Might Matter More Than (Cultural) Distance," Management International Review, Springer, vol. 56(1), pages 1-34, February.
    9. Haq, Hammad ul & Drogendijk, Rian & Blankenburg Holm, Desirée, 2017. "Attention in words, not in deeds: Effects of attention dissonance on headquarters-subsidiary communication in multinational corporations," Journal of World Business, Elsevier, vol. 52(1), pages 111-123.
    10. Igor B. Gurkov & Michael J. Morley, 2017. "Contributions Towards a Renewed Debate on Multinational Headquarter-Subsidiary Relations:Subsidiary Mandates, Corporate Parenting Styles and Collective Psychological Contracts," HSE Working papers WP BRP 55/MAN/2017, National Research University Higher School of Economics.
    11. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    12. Günter K Stahl & Rosalie L Tung & Tatiana Kostova & Mary Zellmer-Bruhn, 2016. "Widening the lens: Rethinking distance, diversity, and foreignness in international business research through positive organizational scholarship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(6), pages 621-630, August.
    13. Cezary Kochalski & Magdalena Łuczak-Trąpczyńska, 2017. "Determinants of Controlling in Foreign Subsidiaries of MNEs: On the Explanatory Potential of the Institutional Perspective," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(3), pages 79-94.
    14. Jan Schmitt & Benoit Decreton & Phillip C. Nell, 2019. "How corporate headquarters add value in the digital age," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-10, December.
    15. Igor Gurkov, 2016. "Oriflame CIS: The Successful Evolution of a Regional Subsidiary’s Mandate," HSE Working papers WP BRP 50/MAN/2016, National Research University Higher School of Economics.
    16. Ambos, Björn & Kunisch, Sven & Leicht-Deobald, Ulrich & Schulte Steinberg, Adrian, 2019. "Unravelling agency relations inside the MNC: The roles of socialization, goal conflicts and second principals in headquarters-subsidiary relationships," Journal of World Business, Elsevier, vol. 54(2), pages 67-81.
    17. Peng, George Z., 2012. "FDI legitimacy and MNC subsidiary control: From legitimation to competition," Journal of International Management, Elsevier, vol. 18(2), pages 115-131.
    18. 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.
    19. Matolcsy, Zoltan & Wakefield, James, 2017. "Multinational headquarter control of wholly owned foreign subsidiaries," The British Accounting Review, Elsevier, vol. 49(3), pages 275-293.
    20. Alain Verbeke & Wenlong Yuan, 2020. "The tyranny of the head office? Revisiting corporate headquarters’ (CHQs) role in MNE subsidiary initiatives," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-11, December.
    21. Sven Kunisch & Markus Menz & David Collis, 2020. "Corporate headquarters in the twenty-first century: an organization design perspective," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-32, December.
    22. Merendino, Alessandro & Sarens, Gerrit, 2020. "Crisis? What crisis? Exploring the cognitive constraints on boards of directors in times of uncertainty," Journal of Business Research, Elsevier, vol. 118(C), pages 415-430.
    23. Igor Gurkov, 2014. "Management practices in Russian manufacturing subsidiaries of foreign multinational corporations: challenging some beliefs about contemporary Russian industrial management," Post-Communist Economies, Taylor & Francis Journals, vol. 26(2), pages 220-240, June.
    24. Tina C Ambos & Sebastian H Fuchs & Alexander Zimmermann, 2020. "Managing interrelated tensions in headquarters–subsidiary relationships: The case of a multinational hybrid organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(6), pages 906-932, August.
    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. Sven Kunisch & Markus Menz & David Collis, 2020. "Corporate headquarters in the twenty-first century: an organization design perspective," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-32, December.
    2. Igor Gurkov & Evgeniy Morgunov & Zokirzhon Saidov & Alexander Arshavsky, 2018. "Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks?," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 12(2), pages 24-35.
    3. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    4. Farah, Bassam & Chakravarty, Dwarka & Dau, Luis & Beamish, Paul W., 2022. "Multinational enterprise parent-subsidiary governance and survival," Journal of World Business, Elsevier, vol. 57(2).
    5. Reichstein-Scholz, Harriet & Giroud, Axèle & Yamin, Mo & Andersson, Ulf, 2021. "Sales to centre stage! Determinants of the division in strategic sales decisions within the MNE," International Business Review, Elsevier, vol. 30(6).
    6. Dimitrios Georgakakis & Mads E. Wedell-Wedellsborg & Tommaso Vallone & Peder Greve, 2023. "Strategic leaders in multinational enterprises: A role-specific microfoundational view and research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 514-537, April.
    7. Daniel S. Andrews & Phillip C. Nell & Andreas P. J. Schotter & Tomi Laamanen, 2023. "And the subsidiary lives on: Harnessing complex realities in the contemporary MNE," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 538-549, April.
    8. Jong Min Lee, 2022. "MNCs as dispersed structures of power: Performance and management implications of power distribution in the subsidiary portfolio," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 126-155, February.
    9. Westney, D. Eleanor & Piekkari, Rebecca & Koskinen, Kaisa & Tietze, Susanne, 2022. "Crossing borders and boundaries: Translation ecosystems in international business," International Business Review, Elsevier, vol. 31(5).
    10. Nan Zhou & Heli Wang, 0. "Foreign subsidiary CSR as a buffer against parent firm reputation risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-27.
    11. Igor B. Gurkov & Michael J. Morley, 2017. "Contributions Towards a Renewed Debate on Multinational Headquarter-Subsidiary Relations:Subsidiary Mandates, Corporate Parenting Styles and Collective Psychological Contracts," HSE Working papers WP BRP 55/MAN/2017, National Research University Higher School of Economics.
    12. Helene Loe Colman & Birgitte Grøgaard & Inger G. Stensaker, 2022. "Organizational identity work in MNE subsidiaries: Managing dual embeddedness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1997-2022, December.
    13. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    14. Nan Zhou & Heli Wang, 2020. "Foreign subsidiary CSR as a buffer against parent firm reputation risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1256-1282, October.
    15. Ferraris, Alberto & Degbey, William Y. & Singh, Sanjay Kumar & Bresciani, Stefano & Castellano, Sylvaine & Fiano, Fabio & Couturier, Jerome, 2022. "Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India," Journal of World Business, Elsevier, vol. 57(2).
    16. Emma Stendahl & Svante Schriber & Esther Tippmann, 2021. "Control changes in multinational corporations: Adjusting control approaches in practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 409-431, April.
    17. Randi Lunnan & Sverre Tomassen & Ulf Andersson & Gabriel R. G. Benito, 2019. "Dealing with headquarters in the multinational corporation: a subsidiary perspective on organizing costs," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-24, December.
    18. Gorgijevski, Alexander N. & Andrews, Daniel S., 2022. "Getting the seal of approval: Pathways to subsidiary initiative acceptance," Journal of International Management, Elsevier, vol. 28(2).
    19. Yang, Xiaoming & Sun, Sunny Li & Jiang, Fuming, 2021. "How Do Emerging Multinational Enterprises Release Subsidiary Initiatives Located in Advanced Economies?," Journal of International Management, Elsevier, vol. 27(1).
    20. Peng, George Z. & Beamish, Paul W., 2019. "Subnational FDI Legitimacy and Foreign Subsidiary Survival," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.

    More about this item

    Keywords

    headquarter-subsidiary relations; corporate parenting styles; multinational corporations; trajectories of development of global industries; foresight; organizational change;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    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:hig:wpaper:65/man2022. 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: Shamil Abdulaev or Shamil Abdulaev (email available below). General contact details of provider: https://edirc.repec.org/data/hsecoru.html .

    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.