Political Heterarchy and Dispersed Entrepreneurship in the MNC

Christopher Williams*, Soo Hee Lee

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

We develop and test a new perspective on dispersed entrepreneurship within the multinational corporation (MNC). Various literatures suggest that corporate, subsidiary, and individual level factors can lead to entrepreneurial initiatives diffusing outward from a subsidiary to other MNC units. We extend this to include political heterarchy (mechanisms by which subsidiary managers enhance their power base through heterarchy) as both direct and moderating factor. Using a survey of 135 managers in a wide range of MNC subsidiaries, we find that a tolerance for local initiative (subsidiary level), subsidiary manager proactivity (individual level), and political heterarchy directly influence initiative diffusion. In terms of moderating effects, political heterarchy is seen to activate corporate level entrepreneurial strategy. We show how political heterarchy is central to dispersed entrepreneurship within the MNC and highlight the positive function of networked organizational politics in rejuvenating the international firm.

Original languageEnglish
Pages (from-to)1243-1268
Number of pages26
JournalJournal of Management Studies
Volume48
Issue number6
DOIs
Publication statusPublished - Sept 2011

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