Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies

Akiebe Humphrey Ahworegba*, Christophe Estay, Myropi Garri

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    235 Downloads (Pure)

    Abstract

    Purpose – To illustrate how threats of institutional duality (ID) incidence subsidiaries confront are converted to opportunities, by conceptualizing how subsidiaries attain operational legitimacy at both their headquarters (HQs) and host countries.

    Design/methodology/approach – Using a systematic literature review, the authors build on institutional theories by analyzing the ID literature along its structure, main processes and outcomes. The authors configure frameworks of both HQ control systems and host countries’ institutional threats, showing how subsidiaries contingently navigate across them using configuration, differentiation and avoidance strategies.

    Findings – The authors’ findings show that “foresighted” subsidiaries attain operational legitimacy through configuration, differentiation and avoidance of threats incidental to ID, by strategizing along certain formal and informal institutional variables including legal, sociocultural and technical factors.

    Originality/value – The authors propose “structural configuration of ID incidence” and “subsidiary path to legitimacy” frameworks. The former configures how the interaction between HQ and host countries’ variables constitute ID incidence threats. The latter highlights how “foresighted” subsidiaries use configuration, differentiation and avoidance strategies to attain operational legitimacy.
    Original languageEnglish
    Pages (from-to)1499-1511
    Number of pages13
    JournalJournal of Organizational Change Management
    Volume33
    Issue number7
    Early online date15 Oct 2020
    DOIs
    Publication statusPublished - 1 Dec 2020

    Keywords

    • Subsidiaries
    • Configuration
    • Differentiation
    • Avoidance
    • Operational legitimacy
    • Institutional duality

    Fingerprint

    Dive into the research topics of 'Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies'. Together they form a unique fingerprint.

    Cite this