Micro-foundations of subsidiary influence: Importance of Subsidiary Manager Skills

This paper contributes to the literature on the micro-foundations of subsidiary influence within the multinational enterprise (MNE). The specific skills of subsidiary managers in attempting to influence corporate headquarters... [ view full abstract ]

This paper contributes to the literature on the micro-foundations of subsidiary influence within the multinational enterprise (MNE). The specific skills of subsidiary managers in attempting to influence corporate headquarters (CHQ) has largely been neglected in the extant literature. Drawing insights from social capital theory and political influence theory, the current paper aims to overcome this shortcoming with an exploratory investigation of subsidiary influence through the use of subsidiary manager’s social and political skills. Using a multiple case study analysis, with in depth qualitative interviews, our study finds that subsidiary managers channel their social and political skill in particular ways in attempting to influence CHQ. Our contribution is in illustrating how social skill allows the subsidiary manager to establish a ‘position’ of increased interaction and communication with key actors at CHQ, whereas political skill involves ‘targeting’ influence through these positions. A major contribution of our study is the development of a typology of subsidiary manager influence roles based on the degree of social positioning and political targeting undertaken.