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Practice creation in multinational corporations: Improvisation and the emergence of lateral knowledge
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
Number of Authors: 32022 (English)In: Journal of world business (Print), ISSN 1090-9516, E-ISSN 1878-5573, Vol. 57, no 3, article id 101287Article in journal (Refereed) Published
Abstract [en]

Lateral collaboration across subsidiaries is beneficial for innovation in multinational corporations (MNCs), such as the creation of new organizational practices, because it helps working towards shared, rather than subsidiarycentric, objectives and creates new knowledge. To instill lateral collaboration, prior research has mainly focused on coordination mechanisms that rely on interpersonal exchanges among dispersed individuals across subsidiaries. However, due to rising concerns over coordination cost and sustainability of international travel, MNCs are increasingly challenged to search for other approaches that require less direct interpersonal interaction across subsidiaries. We, therefore, ask: How can MNCs elicit lateral collaboration during practice creation in a less space-time sensitive way? Drawing on a longitudinal case study, we develop a model of practice creation in MNCs. Our model offers two main insights. First, it details a novel approach for unleashing the benefits of lateral collaboration in globally-linked innovation processes in MNCs. In contrast to emphasizing coordination mechanisms that focus on interpersonal interactions across subsidiaries, our study contributes by detailing the emergence of lateral knowledge through a shared technological artefact as key enabler. Second, our model illuminates how MNCs can innovate new organizational practices that reflect both MNC and local subsidiary needs by adopting an improvisational approach.

Place, publisher, year, edition, pages
2022. Vol. 57, no 3, article id 101287
Keywords [en]
MNCs, MNEs, subsidiaries, improvisation, new practice creation, technological artefacts, lateral knowledge
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-200398DOI: 10.1016/j.jwb.2021.101287ISI: 000725563000002OAI: oai:DiVA.org:su-200398DiVA, id: diva2:1625269
Available from: 2022-01-06 Created: 2022-01-06 Last updated: 2022-01-06Bibliographically approved

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Yakhlef, Ali

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