Integrating external actors into the microfoundations of practice transfer in MNEs: a research agenda

Abstract

PurposeThe transfer of organizational practices in multinational enterprises (MNEs), typically from the headquarters to foreign subsidiaries, has been a key theme in international business (IB) literature. Research on this topic increasingly acknowledges the important role of organizational actors external to the focal MNE. Furthermore, there is a growing interest in the microfoundational underpinnings of practice transfer as an important phenomenon in IB. This paper aims to bring together these two emerging research trends to outline an exciting and important avenue for further research.Design/methodology/approachThis is a conceptual paper. This paper builds on prior empirical research to theorize different types of involvement of external organizational actors in the transfer process. This study further identifies specific mechanisms that lead to transfer outcomes in terms of practice adaptation.FindingsThe authors develop conceptual arguments regarding the role of external actors in the microfoundations of transfer. The involvement of external organizational actors can be either direct or indirect, and it can occur in the initiation stage at headquarters level and/or in the implementation stage at subsidiary level. The authors theorize how the involvement of external organizational actors in the transfer process shapes practice adaptation as a key outcome. This study summarizes the theorization with the help of propositions, and this study also identifies a set of research questions that can guide future research on this increasingly important topic.Originality/valueThis paper contributes to the literature by developing a research agenda to open up the black box regarding the role of external actors in the microfoundations of practice transfer in MNEs.