TY - JOUR

T1 - The (un)predictable factor

T2 - the role of subsidiary social capital in international takeovers

AU - Navrbjerg, Steen Erik

AU - Minbaeva, Dana

PY - 2016/4/1

Y1 - 2016/4/1

N2 - Purpose– The purpose of this paper is to investigate how the implementation of headquarters-originated employment practices affect multinational corporation (MNC) ability to exploit the value of organizational social capital of the acquired subsidiary. Design/methodology/approach– The authors use qualitative insights collected over 16 years from a Danish company to illustrate how a foreign MNC’s interference with the balanced structure of relations, norms, and roles in a subsidiary jeopardized the value of existing social capital. Findings– The authors argue that changes in the collective perception of employment practices create the collective response, constructive or destructive, resulting respectively in the gain or loss of the performance benefits arising from organizational social capital. Practical implications– The authors suggest two guidelines and two general propositions for future research on the value of organizational social capital in international takeovers. Originality/value– The results indicate that local management and employees could use organizational social capital as a unique feature of the local business system when competing with other subsidiaries in the same MNC.

AB - Purpose– The purpose of this paper is to investigate how the implementation of headquarters-originated employment practices affect multinational corporation (MNC) ability to exploit the value of organizational social capital of the acquired subsidiary. Design/methodology/approach– The authors use qualitative insights collected over 16 years from a Danish company to illustrate how a foreign MNC’s interference with the balanced structure of relations, norms, and roles in a subsidiary jeopardized the value of existing social capital. Findings– The authors argue that changes in the collective perception of employment practices create the collective response, constructive or destructive, resulting respectively in the gain or loss of the performance benefits arising from organizational social capital. Practical implications– The authors suggest two guidelines and two general propositions for future research on the value of organizational social capital in international takeovers. Originality/value– The results indicate that local management and employees could use organizational social capital as a unique feature of the local business system when competing with other subsidiaries in the same MNC.

KW - Faculty of Social Sciences

KW - Social kapital

KW - HRM, IR

KW - multinationale selskaber

KW - virskomhedsovertagelser

U2 - 10.1108/JOEPP-03-2016-0026

DO - 10.1108/JOEPP-03-2016-0026

M3 - Journal article

VL - 3

SP - 115

EP - 138

JO - Journal of Organizational Effectiveness

JF - Journal of Organizational Effectiveness

SN - 2051-6614

IS - 2

ER -