The Effect of Subsidiary Negotiation Processes on Performance: Insights from the Brewery Sector
Conference arranged by Department of International Economics and Management.
Conference Theme
A multinational corporation (MNC) is an entity that owns or controls pro¬duction or service facilities located outside of the country in which it is based. The headquarters of the MNC organizes its activities by decentrally delegating business areas and strategic responsibilities to its subsidiaries. The degree of decentralization is often a result of negotiations between headquarters and subsidiary management, and the workshop questions the effects of these negotiations on performance.
On the one hand, negotiations between headquarters and subsidiary management solve problems concerning asymmetric distribution of information, either by revealing facts that headquarters’ management are not aware of or by acting as translators and reveal tacit elements of local business conditions. Furthermore, the existence of negotiations is further a managerial incentive for subsidiary management. On the other hand, utilization of subsidiary management negotiation skills (and lobbying power) might lead to inefficient resource allocation, when subsidiary management seeks sub-optimization. Furthermore, negotiations might lead to costly conflicting situations.
However, it is necessary to associate the effects of these negotiation processes with MNC and subsidiary performance. Such a research design will fill an existing gab in the international business literature, and simultaneously be of relevance for business managers in both headquarters and subsidiaries respectively. Empirically, this research will rely on a survey of the brewery sector. This industry is seemingly under researched, and contains few large players with a substantial numbers of geographically spread subsidiaries.
Speakers:
Rudi Schmidt, is professor from the University of Jena, with a research interest in Globalization, Change Management and Managerial Science. Rudi Schmidt has more than 100 publications, among others in the Journal of Political Economy.
Mike Geppert is Professor of International Business and Strategy, at the University of Surrey School of Management. He has written several contributions within the framework institutional theory, and has recent publications in Human Relations.
Chistoph Dörrenbächer, assistant professor at the University of Groningen, focuses his research on various aspects of organizational behavior in MNCs. His latest publications include a special issue of the Journal of International Management on Micro-politics and a conflict in MNCs.
Frank Shirmer is professor in Organisation at the Technische Universität in Dresden. His major research fields are organisational change in respect to politics, managerial work and behaviour. His latest contribution is in Managementforschung, and Soziale Welt, together with writings for the Sage publishing company.
Jens Gammelgaard, associate professor from Copenhagen Business School, has researched different aspects of subsidiary role development, based on the descriptions of subsidiary roles, and has a recent article in Journal of International Management regarding this matter.