Abstract
This paper explains policy-practice coupling and decoupling processes that unfold in multinational enterprises (MNEs) over time given the specific characteristics of the issue considered. We propose that three attributes of issues-complexity, compatibility with the subsidiaries’ values and performance advantage- as well as their various levels of institutionalization in the MNE and the subsidiaries’ industries and countries influence the coupling and decoupling paths they follow. The results of a fuzzy set qualitative comparative analysis of 25 practices on 3 Corporate Social Responsibility (CSR) issues in 65 subsidiaries of an MNE show that (1) conformity levels vary greatly over time and space within complex organizations, (2) the institutionalization of an issue in both the subsidiary’s country and its industry is key for policy-practice coupling, while (3) practices are decoupled from the corporate policy over time primarily because of certain core attributes of the issues.
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