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Whither national subsidiaries? The need to refocus international management research on structures and processes that matter

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Abstract

The notion that multinational companies (MNCs) are comprised of multiple subsidiaries in different countries is one that underpins voluminous research in international management. This body of research was recently the subject of an authoritative and comprehensive review in this journal (Meyer et al. in J Int Bus Stud 51(4):538–576, 2020). However, we share the concerns about the prevalence of the term ‘subsidiary’ within academic writing expressed by some others (Mees-Buss et al. in J Int Bus Stud 50(9):1513–1543, 2019) and take this further by questioning the assumptions of authority and control on which it is based. We argue that the role of national subsidiaries in how MNCs are organized has been eroded by developments ‘from above’ and ‘from below’ the national level such that it cannot be assumed that national subsidiaries are important influences on how MNCs govern and coordinate their production and service provision and how work is organized. We set out the implications for theory and methods in international management (IM).

Résumé

La notion selon laquelle les entreprises multinationales (MNCs - Multinational Companies) se constituent de plusieurs filiales dans différents pays est celle qui sous-tend la recherche abondante en management international. Ce corpus de recherche a récemment fait l'objet d'une revue rigoureuse et complète dans ce journal (Meyer et al. in J Int Bus Stud 51(4):538–576, 2020). Néanmoins, nous partageons les préoccupations relatives à la large diffusion du terme « filiale » dans la rédaction académique exprimées par certains autres (Mees-Buss et al. in J Int Bus Stud 50(9):1513–1543, 2019), et les approfondissons en remettant en question les suppositions liées à l'autorité et au contrôle sur lesquelles se fonde ce terme. Nous argumentons que le rôle des filiales nationales dans l’organisation des MNCs a été tellement érodé par les développements « au-dessus » et « au-dessous » du niveau national qu’il est impossible de supposer que les filiales nationales exercent une influence importante sur la manière dont les MNCs gouvernent et coordonnent leur production et la prestation de services, ainsi que sur la manière dont le travail est organisé. Nous exposons les implications pour la théorie et les méthodes en management international.

Resumen

La noción de que las compañías multinacionales (MNCs por sus siglas en inglés) están compuesta de múltiples filiales en diferentes países es una de las bases de una voluminosa investigación en gerencia internacional. Este conjunto de investigación fue recientemente el objeto de una reciente revisión seria y exhaustiva en esta revista (Meyer, Li y Schotter, 2020). Sin embargo, compartimos las preocupaciones sobre la prevalencia del término “filial” dentro de la escritura académica expresada por algunos otros (Mees-Buss, Welch y Westney, 2019) y lo llevamos más allá al cuestionar los supuestos de autoridad y control sobre las cuales está basado. Sostenemos que el papel de las filiales nacionales en cómo las compañías multinacionales están organizadas ha sido erosionada por los desarrollos “desde arriba” y “desde abajo” del nivel nacional de tal manera que no puede ser asumido que las filiales nacionales son influencias importantes sobre cómo las compañías multinacionales gobiernan y coordinan su producción y provisión de servicios y cómo está organizado el trabajo. Presentamos las implicaciones para la teoría y métodos en gerencia internacional (IM por sus iniciales en inglés).

Resumo

A noção de que empresas multinacionais (MNCs) são compostas por várias subsidiárias em diferentes países é o que sustenta volumosa pesquisa em gestão internacional. Este corpo de pesquisa foi recentemente o assunto de uma revisão confiável e abrangente neste periódico (Meyer, Li e Schotter, 2020). No entanto, compartilhamos as preocupações sobre a prevalência do termo "subsidiária" na escrita acadêmica expressa por alguns outros (Mees-Buss, Welch e Westney, 2019) e levamos isso mais longe, questionando os pressupostos de autoridade e controle em que se baseia . Argumentamos que o papel das subsidiárias nacionais na forma pela qual MNCs são organizadas foi corroído por desenvolvimentos 'acima' e 'abaixo' do nível nacional, de modo que não se pode presumir que subsidiárias nacionais sejam influências importantes sobre como MNCs governam e coordenam sua produção e prestação de serviços e como o trabalho é organizado. Definimos as implicações para a teoria e métodos em gestão internacional (IM).

摘要

跨国公司 (MNC) 是由在不同国家里的多个子公司组成的这一观点支撑着国际管理的大量研究。最近, 这方面的研究最近在本杂志进行了权威而全面的综述 (Meyer, Li和Schotter, 2020年)。然而, 我们也对其他人表达的对学术写作中 ‘子公司’ 一词的流行所表示的担忧有同感 (Mees-Buss, Welch和Westney, 2019年), 并通过质疑它所基于的权威和控制的假设来进一步研究。我们认为, 国家子公司对MNC如何组织所起的作用已被国家层面 “自上而下” 和 “自下而上” 的发展所侵蚀, 因此不能认为国家子公司对MNC如何管理和协调其生产和服务提供以及工作是如何组织的具有重要影响。我们阐明了对国际管理(IM)理论和方法的启示。

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Acknowledgements

We are grateful to the Economic and Social Research Council in the UK for financial support through four awards: (RES-000-23-0305); (RES-062-23-1886); (RES-062-23-2080); (ES/N007883/2).

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Correspondence to Tony Edwards.

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Accepted by Alain Verbeke, Editor-in-Chief, 19 March 2021. This article has been with the authors for one revision.

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Edwards, T., Svystunova, L., Almond, P. et al. Whither national subsidiaries? The need to refocus international management research on structures and processes that matter. J Int Bus Stud 53, 203–210 (2022). https://doi.org/10.1057/s41267-021-00437-y

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