The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism
New product launching (NPL) to the local market by subsidiary managers is a strategic activity, which requires organizational supports from MNC global network. The NPL activity is marked by high level of uncertainty, risk, and market failure. Thus, a headquarter needs to integrate the subsidiary NPL...
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| Format: | Article |
| Language: | English |
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Universitas Indonesia
2013-07-01
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| Series: | The South East Asian Journal of Management |
| Online Access: | http://journal.ui.ac.id/index.php/tseajm/article/view/1790 |
| _version_ | 1797964388631576576 |
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| author | Firmanzah Firmanzah |
| author_facet | Firmanzah Firmanzah |
| author_sort | Firmanzah Firmanzah |
| collection | DOAJ |
| description | New product launching (NPL) to the local market by subsidiary managers is a strategic activity, which requires organizational supports from MNC global network. The NPL activity is marked by high level of uncertainty, risk, and market failure. Thus, a headquarter needs to integrate the subsidiary NPL into global strategy. There are two mechanisms to integrate subsidiaries’ activities during NPL process; coordination and control process. By testing the effect of each mechanism on role clarity and functional conflict, I found that coordination mechanism increase role clarity between headquarter and subsidiaries’ managers. In contrast, exercising control mechanism reduces role clarity and functional conflict between headquarter and subsidiaries’ managers during NPL. This research shows that both role clarity and functional conflict increase new product commercial performance introduced by subsidiary in the local market. <br />Keywords: new product launching (NPL), coordination mechanism, control <br />mechanism, and new product performance |
| first_indexed | 2024-04-11T01:44:21Z |
| format | Article |
| id | doaj.art-4f88664345cb4a9a8ecd3ee8c006ebcc |
| institution | Directory Open Access Journal |
| issn | 1978-1989 2355-6641 |
| language | English |
| last_indexed | 2024-04-11T01:44:21Z |
| publishDate | 2013-07-01 |
| publisher | Universitas Indonesia |
| record_format | Article |
| series | The South East Asian Journal of Management |
| spelling | doaj.art-4f88664345cb4a9a8ecd3ee8c006ebcc2023-01-03T08:02:56ZengUniversitas IndonesiaThe South East Asian Journal of Management1978-19892355-66412013-07-011219121210.21002/seam.v1i2.17901319The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination MechanismFirmanzah Firmanzah0Universitas IndonesiaNew product launching (NPL) to the local market by subsidiary managers is a strategic activity, which requires organizational supports from MNC global network. The NPL activity is marked by high level of uncertainty, risk, and market failure. Thus, a headquarter needs to integrate the subsidiary NPL into global strategy. There are two mechanisms to integrate subsidiaries’ activities during NPL process; coordination and control process. By testing the effect of each mechanism on role clarity and functional conflict, I found that coordination mechanism increase role clarity between headquarter and subsidiaries’ managers. In contrast, exercising control mechanism reduces role clarity and functional conflict between headquarter and subsidiaries’ managers during NPL. This research shows that both role clarity and functional conflict increase new product commercial performance introduced by subsidiary in the local market. <br />Keywords: new product launching (NPL), coordination mechanism, control <br />mechanism, and new product performancehttp://journal.ui.ac.id/index.php/tseajm/article/view/1790 |
| spellingShingle | Firmanzah Firmanzah The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism The South East Asian Journal of Management |
| title | The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism |
| title_full | The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism |
| title_fullStr | The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism |
| title_full_unstemmed | The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism |
| title_short | The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism |
| title_sort | effect of headquarter integration mechanisms on subsidiaries new product success from control to coordination mechanism |
| url | http://journal.ui.ac.id/index.php/tseajm/article/view/1790 |
| work_keys_str_mv | AT firmanzahfirmanzah theeffectofheadquarterintegrationmechanismsonsubsidiariesnewproductsuccessfromcontroltocoordinationmechanism AT firmanzahfirmanzah effectofheadquarterintegrationmechanismsonsubsidiariesnewproductsuccessfromcontroltocoordinationmechanism |