The Role of MNE Subsidiaries in the Practice of Global Business Models in Transforming Economies

Ngoasong, Michael Zisuh; Wang, Jinmin; Amdam, Rolv Petter; Bjarnar, Ove

Abstract

This study provides new insights into the role of subsidiary managers in the practice of global business models of multinational enterprises in transforming economies. Drawing on the global business model literature and through semi-structured interviews with a leading Norwegian maritime multinational enterprise in China, we have developed and critically explored a theoretical framework for uncovering how subsidiary managers understand and manage the tensions between the headquarters based in a western country and the subsidiaries based in a transforming economy. More specifically, when implementing the global business model in the transforming economy, subsidiary managers need to undertake effective management of structural, behavioural, and cultural tensions along with the global integration-local responsiveness dilemma. Subsidiary managers can contribute to solving structural tensions between the headquarters and subsidiary by undertaking effective market sensing and knowledge transfer activities to integrate the transforming economies into the MNE's global production networks. Meanwhile, they need to make effective relationship management to solve behavioural and cultural tensions.

Citation

Ngoasong, M. Z., Wang, J., Amdam, R. P., & Bjarnar, O. (2021). The Role of MNE Subsidiaries in the Practice of Global Business Models in Transforming Economies. Management and Organization Review, 17(2), 254-281. https://doi.org/10.1017/mor.2020.55

• Journal Article Type: Article
• Acceptance Date: Jul 13, 2020
• Online Publication Date: Feb 15, 2021
• Publication Date: May 1, 2021
• Deposit Date: Jul 20, 2020
• Publicly Available Date: Feb 16, 2023
• Journal: Management and Organization Review
• Print ISSN: 1740-8776
• Electronic ISSN: 1740-8784
• Publisher: Cambridge University Press
• Peer Reviewed: Peer Reviewed
• Volume: 17
• Issue: 2
• Pages: 254-281
• DOI: https://doi.org/10.1017/mor.2020.55
• Keywords: Strategy and Management; Business and International Management
• Public URL: https://nottingham-repository.worktribe.com/output/4778256
• Publisher URL: https://www.cambridge.org/core/journals/management-and-organization-review/article/abs/role-of-mne-subsidiaries-in-the-practice-of-global-business-models-in-transforming-economies/83587DCF0FC4A596963EE9859BB46A5B
• Additional Information: This is the peer reviewed version of the following article: Ngoasong, M. Z., Wang, J., Amdam, R. P., & Bjarnar, O. (2021). The Role of MNE Subsidiaries in the Practice of Global Business Models in Transforming Economies. Management and Organization Review, 1–28, which has been published in final form at https://doi.org/10.1017/mor.2020.55. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.