Democratizing the Multinational Corporation (MNC): Interaction Between Intent at Headquarters and Autonomous Subsidiary Initiatives

Abstract

Contemporary organizations with multinational business activities must strive to achieve strategic responsiveness to thrive and survive as they operate across a highly dynamic and complex global business environment. Here we emphasize the importance of combining the slow analytical strategy processes at headquarters with the fast autonomous responses taken by frontline agents in the subsidiaries in view of the changing conditions. New business developments are observed first in the fast activities around the multinational periphery where updated experiences from ongoing responses create useful insights that can be used strategically if management at headquarters is cognizant about its existence and able to collect this information. We introduce the notion of democratizing the strategic engagement of managers and employees at all levels and locations of the multinational corporation (MNC) as an essential leadership paradigm. The implied interaction between slow central analytical reasoning at headquarters and updated insights from fast decentralized initiatives in local subsidiaries constitutes an effective dynamic responsive mechanism. This dynamic interaction implies that critical strategic decisions made in the MNC must be informed by the diverse updated insights of managers and employees operating on the corporate frontlines tapping into the crowd wisdom readily available in and around the organization.

Citation

Andersen, T.J. and Hallin, C.A. (2017), "Democratizing the Multinational Corporation (MNC): Interaction Between Intent at Headquarters and Autonomous Subsidiary Initiatives", Andersen, T.J. (Ed.) The Responsive Global Organization (Emerald Studies in Global Strategic Responsiveness), Emerald Publishing Limited, Leeds, pp. 71-86. https://doi.org/10.1108/978-1-78714-831-420171003