Table Of ContentAndrea Daniel
Perception Gaps between Headquarters and Subsidiary Managers
GABLER RESEARCH
mir-Edition
Herausgeber / Editors:
Prof. Dr. Andreas Al-Laham
Universität Mannheim,
Prof. Dr. Johann Engelhard
Universität Bamberg,
Prof. Dr. Michael Kutschker
Universität Eichstätt, Ingolstadt,
Prof. Dr. Profs. h.c. Dr. h.c. Klaus Macharzina
Universität Hohenheim, Stuttgart,
Prof. Dr. Michael-Jörg Oesterle
Universität Mainz,
Prof. Dr. Stefan Schmid
ESCP Europe Wirtschaftshochschule Berlin,
Prof. Dr. Martin K. Welge
Universität Dortmund,
Prof. Dr. Joachim Wolf
Universität Kiel
In der mir-Edition werden wichtige Ergebnisse der wissenschaftlichen Forschung
sowie Werke erfahrener Praktiker auf dem Gebiet des internationalen Managements
veröffentlicht.
The series mir-Edition includes excellent academic contributions and experiential
works of distinguished international managers.
Andrea Daniel
Perception Gaps
between Headquarters
and Subsidiary Managers
Differing Perspectives on Subsidiary
Roles and their Implications
RESEARCH
Bibliografische Information der Deutschen Nationalbibliothek
Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der
Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über
<http://dnb.d-nb.de> abrufbar.
Bibliographic information published by the Deutsche Nationalbibliothek
The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;
detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.
Dissertation ESCP Europe Wirtschaftshochschule Berlin, 2009
Abonnenten von mir – Management International Review erhalten auf die in der mir-Edition veröffentlichten
Bücher 10% Rabatt.
Subscribers to mir – Management International Review are entitled to a 10 % price reduction on books
published in mir-Edition.
1. Auflage 2010
Alle Rechte vorbehalten
© Gabler | GWV Fachverlage GmbH, Wiesbaden 2010
Lektorat: Ute Wrasmann | Jutta Hinrichsen
Gabler ist Teil der Fachverlagsgruppe Springer Science+Business Media.
www.gabler.de
Das Werk einschließlich aller seiner Teile ist urheberrechtlich geschützt. Jede
Verwertung außerhalb der engen Grenzen des Urheberrechtsgesetzes ist ohne
Zustimmung des Verlags unzulässig und strafbar. Das gilt insbesondere für
Vervielfältigungen, Übersetzungen, Mikroverfilmungen und die Einspeicherung und
Verarbeitung in elektronischen Systemen.
Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk
berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der
Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten wären und daher von jedermann
benutzt werden dürften.
Umschlaggestaltung: KünkelLopka Medienentwicklung, Heidelberg
Gedruckt auf säurefreiem und chlorfrei gebleichtem Papier
Printed in Germany
ISBN 978-3-8349-2071-3
Vorwort der Herausgeber
Für viele Unternehmen ist es heutzutage unerlässlich, sich auf ausländischen Märkten zu
betätigen. Ein erfolgreiches Management der Internationalisierung stellt Unternehmen
allerdings immer wieder vor neue Herausforderungen. Die Herausgeber beabsichtigen mit der
Schriftenreihe mir-Edition, die vielfältigen und komplexen Managementanforderungen der
internationalen Unternehmenstätigkeit wissenschaftlich zu begleiten. Die mir-Edition soll
zum einen der empirischen Feststellung und der theoretischen Verarbeitung der in der Praxis
des Internationalen Managements beobachtbaren Phänomene dienen. Zum anderen sollen die
hierdurch gewonnenen Erkenntnisse in Form von systematisiertem Wissen, von Erklärungen
und Denkanstößen sowie von Handlungsempfehlungen verfügbar gemacht werden.
Diesem angewandten Wissenschaftsverständnis fühlt sich seit nunmehr 50 Jahren auch die in
über 40 Ländern gelesene internationale Fachzeitschrift mir – Management International
Review – verpflichtet. Während in der Zeitschrift allerdings nur kurzgefasste
englischsprachige Aufsätze publiziert werden, soll der breitere Raum der vorliegendenden
Schriftenreihe den Autoren und Lesern die Möglichkeit zur umfänglichen und vertieften
Auseinandersetzung mit dem jeweils behandelten Problem des Internationalen Managements
eröffnen. Der Herausgeberkreis der mir-Edition wurde 2008 um weitere renommierte
Fachvertreter des Internationalen Managements erweitert. Geblieben ist jedoch die
Herausgeberpolitik für die mir-Edition, in der Schriftenreihe innovative und dem
Erkenntnisfortschritt dienende Beiträge einer kritischen Öffentlichkeit vorzustellen. Neben
Forschungsergebnissen, insbesondere des wissenschaftlichen Nachwuchses, können auch
einschlägige Werke von Praktikern mit profundem Erfahrungswissen im Internationalen
Management einbezogen werden. Wissenschaftliche Sammelbände, etwa zu Tagungen aus
dem Bereich des Internationalen Managements, sind ebenso sehr gerne in der Reihe
willkommen. Die Herausgeber laden zu Veröffentlichungen sowohl in deutscher als auch in
englischer Sprache ausdrücklich ein.
Das Auswahlverfahren sieht vor, dass die Herausgeber gemeinsam über die Veröffentlichung
eines für die Reihe eingereichten Werkes entscheiden. Wir freuen uns auf Ihre Manuskripte
und hoffen, mit dieser seit langer Zeit renommierten Schriftenreihe die wissenschaftliche
Diskussion und die praktische Lösung von Problemen des Internationalen Managements
weiter zu stimulieren.
Andreas Al-Laham, Johann Engelhard,
Michael Kutschker, Klaus Macharzina,
Michael-Jörg Oesterle, Stefan Schmid,
Martin K. Welge, Joachim Wolf
Preface
Nowadays, it is essential for a multitude of companies to engage in foreign markets. However,
the successful management of internationalization processes constantly poses new challenges.
By publishing the book series “mir-Edition”, the editors attempt to provide academic
guidance on the manifold and complex requirements of international business activities. The
book series’ purpose hence is twofold. Firstly, the “mir-Edition” is to provide empirical
assessment and theoretical elaboration on the phenomena which can be observed in
international management practice. Secondly, the findings obtained are to be made available
in the form of systematised knowledge, explanations, thought-provoking impulses as well as
recommendations for further courses of action.
For the past 50 years, the international journal “mir – Management International Review”,
which is read in more than 40 countries, has seen itself committed to promoting an
understanding of international management as an applied academic discipline. As of now, the
journal only publishes articles in English. The wider range of the existing book series ought to
give authors and readers the opportunity to deal with the various problems of international
management in a comprehensive and thorough manner. The editorial board of the “mir-
Edition” was extended in 2008 through the addition of renowned experts from the domain of
international management. Yet, the established editors’ policy for the “mir-Edition” of
presenting innovative work to a critical audience, which support the scientific advancement,
has remained unchanged.
Besides the academic contributions of young scholars, the editors also welcome the relevant
works of practitioners, who possess a profound knowledge in the area of international
management. Furthermore, edited volumes, collecting for instance presentations held at
conferences in the field of international management, are invited for publication. The editors
explicitly welcome books both in the English and the German language.
The selection process stipulates that the editors jointly decide on the publication of any book
manuscript submitted for the series. As editors of this well established and renowned book
series, we are looking forward to receiving your manuscripts and we hope to further stimulate
the academic discussion and to provide applied solutions for the challenges in the area of
international management.
Andreas Al-Laham, Johann Engelhard,
Michael Kutschker, Klaus Macharzina,
Michael-Jörg Oesterle, Stefan Schmid,
Martin K. Welge, Joachim Wolf
Foreword
Within the literature on international management, headquarters-subsidiary relationships
have been a central research area for some decades now. Furthermore we can rely on
various contributions in the international management field which have shown that there is a
great variety of subsidiary roles. Surprisingly, it is often assumed that headquarters and
subsidiaries have the same understanding of the role a specific subsidiary plays. However,
this assumption may be questioned. While subsidiaries can take on different roles, we should
not take for granted that headquarters and subsidiaries share the same perceptions of these
roles.
Andrea Daniel focuses on differences in perception between headquarters’ and subsidiaries’
managers. She reviews the relevant literature and finds out that, so far, not many
contributions in international management research have concentrated on perception gaps.
While some studies have covered some antecedents and/or some consequences of
perceptions gaps, they are usually not particularly strong in their theoretical development. To
fill this research gap is one of Andrea Daniel’s objectives. Another major objective is to
contribute to the research area on perception gaps in MNCs in an empirical way. The
conceptual as well as the empirical focus of the dissertation is on perception gaps regarding
a subsidiary’s role and on conflict as one major potential consequence of perception gaps.
To me, the present book offers highly valuable insights in headquarters-subsidiary
relationships, by departing from the assumption that headquarters and subsidiaries have the
same understanding of subsidiary roles. Andreas Daniel gives new theoretical insights by
transferring Katz and Kahn’s “open system approach” to network MNCs. Using a case study
approach, she not only adds rich empirical material on how perception gaps can cause
conflicts; she also demonstrates how important it is to differentiate between different types
of conflicts. Interestingly, headquarters and subsidiaries do not only have differing
perceptions when it comes to subjective dimensions. Even for dimensions that we may
interpret as rather objective – such as the type of value-adding activities carried out by a
subsidiary – differences in perception between headquarters and subsidiaries appear.
I highly appreciate the work done by Andrea Daniel and I am sure that the work will have an
impact on the international management field. The contribution gives us a more realistic
picture of the complex nature of MNCs, it focuses on the two main groups of actors within
MNCs (i.e. headquarters and subsidiaries) and also stresses the roles of individuals within
headquarters and subsidiaries for negotiating reality (as exemplified in the current case by
the subsidiary’s role). I am convinced that the ideas and the results presented in this book
will influence future research and management practice alike.
Berlin, November 2009 Stefan Schmid
Preface
This thesis was written while I was working as a research assistant at the Chair of
International Management and Strategic Management at ESCP Europe Wirtschaftshochschule
Berlin. I would like to use this preface to thank all persons who accompanied me during that
time and who supported my project.
First of all, I would like to thank my supervisor Prof. Dr. Stefan Schmid. He guided me in
exploring the field of headquarters-subsidiary relationships and immediately supported the
idea to study the perception of subsidiary roles. Through valuable ideas and critical
questions, he inspired many new thoughts that influenced the final shape of my thesis. He
encouraged me to look for original solutions and was open for less conventional directions.
Thank you very much!
I am also indebted to Prof. Dr. Wolfgang Dorow who accepted the task to function as second
reviewer and who provided insightful comments from a different perspective on the
manuscript.
The empirical study which is a central part of this thesis would not have been possible
without the generous support of the top managers of two multinational companies. I am
grateful for the opportunity to take a look behind the scenes of these companies and I wish
to thank each one of my interview partners who invested a significant amount of time in
answering my questions and discussing their point of view on the headquarters-subsidiary
relationships in their company.
Words of thanks also go to my colleagues and fellow Ph.D. students at ESCP Europe. They
contributed to my thesis through discussions, ideas, questions and by critically revising
selected parts of the manuscript. Moreover, they played an important role by creating a very
pleasant working environment in which mutual support could be taken for granted. I would
like to mention Monika Dammer-Henselmann, Dr. Matthias Daub, Tobias Dauth, Ruben Dost,
Philipp Grosche, Swantje Hartmann, Dr. Katharina Hefter, Thomas Kotulla, Dr. Mario
Machulik, Julia Maurer, Renate Ramlau, and Stephan Schulze. Thanks to all of you!
The most critical reviewer of the manuscript was Michael. Thank you for your honest
opinion, your endless encouragement and your patience! Finally, I would like to thank my
family and my friends for their support and backing throughout the time of my dissertation.
Munich, November 2009 Andrea Daniel
XIII
Brief Contents
1. Introduction........................................................................................1
1.1 Context....................................................................................................................1
1.2 Goals of the Study.....................................................................................................2
1.3 Outline of the Study..................................................................................................3
2. Central Concepts.................................................................................5
2.1 Multinational Network Corporations.............................................................................5
2.2 Subsidiary Roles in Multinational Network Corporations.................................................13
2.3 Perception Gaps Concerning Subsidiary Roles..............................................................27
2.4 Headquarters-Subsidiary Conflict................................................................................39
2.5 Summary and Conclusions.........................................................................................52
3. Conceptual Framework.....................................................................54
3.1 Open System Approach According to Katz and Kahn.....................................................54
3.2 Multinational Network Corporations as Open Systems...................................................77
3.3 Research Framework................................................................................................93
4. Empirical Study...............................................................................111
4.1 Research Design....................................................................................................111
4.2 Data Collection.......................................................................................................118
4.3 Data Analysis.........................................................................................................135
4.4 Scientific Quality Criteria.........................................................................................142
5. Empirical Findings...........................................................................147
5.1 Introduction...........................................................................................................147
5.2 The Cases.............................................................................................................155
5.3 Perception Gaps Concerning the Subsidiary’s Role......................................................203
5.4 Implications of Perception Gaps for the Headquarters-Subsidiary Relationship...............219
6. Discussion.......................................................................................240
6.1 Limitations of the Present Study...............................................................................240
6.2 Implications for the International Business Literature.................................................245
6.3 Avenues for Future Research...................................................................................250
6.4 Managerial Implications..........................................................................................253
6.5 Summary..............................................................................................................256
