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Dynamic Capability Development in MNEs: Reconciling Routine Reconfiguration between Headquarters and Subsidiaries
Institut Supérieur de Commerce, France.
University of Nebraska, USA.
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation. BI Norwegian Business Sch, Dept Strategy & Entrepreneurship, Oslo, Norway. (Marketing & Strategy)ORCID iD: 0000-0003-4425-9367
2021 (English)In: Global Strategy Journal, ISSN 2042-5791, Vol. 11, no 3, p. 380-401Article in journal (Refereed) Published
Abstract [en]

Research Summary: Starting from the premise that firms need dynamic capabilities to adapt to changing environments, we discuss how multinational enterprises (MNEs) develop dynamic capabilities from internationalization. Unlike domestic firms that develop dynamic capabilities within one organizational system, MNEs are inherently multi-level systems with the headquarters and subsidiaries. In this paper, we focus on how internationalization depth and breadth function as sources of learning and unlearning in the headquarters and subsidiaries, and how this serves as the antecedent for routine reconfiguration and dynamic capability development in the MNE. We theorize that the headquarters' and subsidiaries' brokering capabilities are critical for reconciling routine reconfiguration at the two levels so that dynamic capability development can occur, and the MNE can adapt to environmental changes. Managerial Summary: Our model of dynamic capability development in multinational enterprises (MNEs) via internationalization makes dynamic capabilities actionable for managers in three main ways. First, we emphasize both learning and unlearning from internationalization as important for both the subsidiaries and headquarters to reconfigure routines to adapt to changing environments. Second, the routine reconfiguration that occurs from the subsidiaries or the headquarters serves as the impetus for dynamic capability development in the MNE. Third, for dynamic capability development to occur in the MNE, both the headquarters and the subsidiaries must be able to reconcile routine reconfigurations via the headquarters' and the subsidiaries' brokering capabilities.

Place, publisher, year, edition, pages
2021. Vol. 11, no 3, p. 380-401
National Category
Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-49828DOI: 10.1002/gsj.1389ISI: 000569256700001Scopus ID: 2-s2.0-85090958046OAI: oai:DiVA.org:mdh-49828DiVA, id: diva2:1462230
Available from: 2020-08-28 Created: 2020-08-28 Last updated: 2022-04-22Bibliographically approved

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CiteExportLink to record
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