Institutional context effects on managerial practices in a European multinational company

The present study investigates the effect of institutional contexts on managerial practices within a multinational company. Questionnaires measuring actual and ideal managerial practices were completed in four different subsidiaries of the same MNC. Results show that the practices of subsidiaries o...

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Main Author: Leonardo Liberman
Format: Article
Language:English
Published: Universidad Nacional de Colombia 2010-08-01
Series:Innovar: Revista de Ciencias Administrativas y Sociales
Subjects:
Online Access:http://revistas.unal.edu.co/index.php/innovar/article/view/29217
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author Leonardo Liberman
author_facet Leonardo Liberman
author_sort Leonardo Liberman
collection DOAJ
description The present study investigates the effect of institutional contexts on managerial practices within a multinational company. Questionnaires measuring actual and ideal managerial practices were completed in four different subsidiaries of the same MNC. Results show that the practices of subsidiaries operating in countries with a higher degree of institutional labor-market regulation were less formalized and directive than in those subsidiaries located in countries with a lower degree of labor-market regulation. It was also found that the degrees of acceptance of these practices differed significantly across institutional contexts: in less restrictive institutional contexts formal and directive practices were more desirable than in more restrictive institutional contexts. It is argued that there is an inverse relationship between the flexibility of subsidiaries’ institutional contexts and the flexibility of their practices (formality and directiveness). Implications and limitations of this study are discussed.
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spelling doaj.art-3a294d3b3a8e4c66a276a0fa50d14f0e2022-12-21T19:43:02ZengUniversidad Nacional de ColombiaInnovar: Revista de Ciencias Administrativas y Sociales0121-50512248-69682010-08-0120375972Institutional context effects on managerial practices in a European multinational companyLeonardo Liberman0Universidad de Los AndesThe present study investigates the effect of institutional contexts on managerial practices within a multinational company. Questionnaires measuring actual and ideal managerial practices were completed in four different subsidiaries of the same MNC. Results show that the practices of subsidiaries operating in countries with a higher degree of institutional labor-market regulation were less formalized and directive than in those subsidiaries located in countries with a lower degree of labor-market regulation. It was also found that the degrees of acceptance of these practices differed significantly across institutional contexts: in less restrictive institutional contexts formal and directive practices were more desirable than in more restrictive institutional contexts. It is argued that there is an inverse relationship between the flexibility of subsidiaries’ institutional contexts and the flexibility of their practices (formality and directiveness). Implications and limitations of this study are discussed.http://revistas.unal.edu.co/index.php/innovar/article/view/29217Managerial practicesinstitutional contextsmultinational companies.
spellingShingle Leonardo Liberman
Institutional context effects on managerial practices in a European multinational company
Innovar: Revista de Ciencias Administrativas y Sociales
Managerial practices
institutional contexts
multinational companies.
title Institutional context effects on managerial practices in a European multinational company
title_full Institutional context effects on managerial practices in a European multinational company
title_fullStr Institutional context effects on managerial practices in a European multinational company
title_full_unstemmed Institutional context effects on managerial practices in a European multinational company
title_short Institutional context effects on managerial practices in a European multinational company
title_sort institutional context effects on managerial practices in a european multinational company
topic Managerial practices
institutional contexts
multinational companies.
url http://revistas.unal.edu.co/index.php/innovar/article/view/29217
work_keys_str_mv AT leonardoliberman institutionalcontexteffectsonmanagerialpracticesinaeuropeanmultinationalcompany