Quotation Cerar, Jelena, Dimitrova, Mihaela, Nell, Phillip C. 2022. Fostering operational management “Best Practices” in subsidiary plants in the Western Balkans: The role of MNC home-country environment and resource allocation. Journal of International Management. 28 (2)


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Abstract

We investigate the adoption of operational management “best practices” in multinational corporation (MNC) subsidiary plants in the Western Balkans. Building on the Practice-Based View (PBV), we suggest that subsidiary plants are more likely to operate according to widely recognized best practices, if these practices are already common in the MNC home country. We also examine the degree to which the MNC can facilitate best practices in their plants by allocating organizational and human resources. We test our hypotheses using survey data from subsidiary managers and secondary company data (n = 129), supplemented with manager interviews (n = 14), collected from European, U.S., and Asian MNCs with subsidiary plants in Bosnia and Herzegovina, Croatia, Serbia, and North Macedonia. Results indicate that the subsidiary plants adopt practices that are common in the MNC home country. They do so to a greater extent when the MNC commits organizational resources to the plants, such as codified written procedures and trainings. Contrary to our expectations, there is no benefit to allocating human resources, such as expatriates and business travelers. We provide insights into the transfer and implementation of best practices in the Western Balkan context, enhance our understanding of the PBV by presenting a specific application of this theoretical perspective, and provide practically relevant results for managers and policymakers.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of International Management
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title Fostering operational management “Best Practices” in subsidiary plants in the Western Balkans: The role of MNC home-country environment and resource allocation.
Volume 28
Number 2
Year 2022
Reviewed? Y
DOI https://doi.org/10.1016/j.intman.2021.100918
Open Access Y
Open Access Link https://www.sciencedirect.com/science/article/pii/S1075425321000971

Associations

People
Cerar, Jelena (Details)
Dimitrova, Mihaela (Details)
Nell, Phillip C. (Details)
Organization
Department of Global Business and Trade DP (Details)
Competence Center for Emerging Markets and CEE WE (Details)
Institute for International Business IN (Details)
Institute for International Business (Nell) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
2965 Knowledge management (Details)
5234 Administrative science (Details)
5307 Business and management economics (Details)
5324 Organizational research (Details)
5333 Business management (Details)
5915 Economic geography (Details)
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