What determines subunit integration in the multinational firm? A meta-analysis

Daniel S. Andrews, Stav Fainshmidt, William Newburry, Ronaldo Parente and Kira Haensel

Journal of International Management, 2023, vol. 29, issue 6

Abstract: Although subunit integration matters to performance outcomes in the multinational firm, the determinants of integration remain unclear. We distinguish between formal integration—the centralization of strategic decision-making and the formalization of policies and procedures and informal integration through socialization toward shared goals and a cohesive identity. We argue that corporate parents' implementation of these integration mechanisms is informed by conditions internal and external to the multinational firm. Drawing on 154 empirical studies encompassing 35,752 foreign subunits over 34 years, we find that a locally oriented subunit strategy negatively affects centralization and socialization. Host country constraints positively affect formalization and socialization. These findings are consistent with some theoretical expectations but contradictory to others. We enrich the nomological network of subunit integration, offering novel insights regarding the internal and external drivers of structural heterogeneity within and between multinational firms. Our findings thus inform theory of the complex nature of managerial decisions in multinational firms.

Keywords: Centralization; Formalization; Integration; Multinational firm; Socialization; Meta-analysis (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S107542532300090X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:29:y:2023:i:6:s107542532300090x

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic
http://www.elsevier. ... 601266/bibliographic

DOI: 10.1016/j.intman.2023.101093

Access Statistics for this article

Journal of International Management is currently edited by M. Kotabe

More articles in Journal of International Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().