Interfere! How Chinese subsidiaries manage their global headquarters

Abstract

Purpose With the increasing dependence on the Chinese market, Chinese subsidiary managers rather than Western managers in the headquarters take responsibility for the overall success of the multinational company (MNC). This paper aims to argue that Chinese managers need to actively interfere to guarantee the survival of the MNC. Transaction analysis is suggested as a tool to rebalance the relationship. Design/methodology/approach Based on illustrative material and experience cases, the authors highlight why and how Chinese subsidiary managers have to engage in interference management. Findings Introducing different strategies within transaction analysis shows how Western managers can deal with Chinese interference management to improve relationships. Practical implications With the use of transaction analysis, Western managers can verify their communication strategies and behavior to better relate to Chinese subsidiaries on an “adult” level. Originality/value Interference management is based on counterintuitive thought that Chinese subsidiary managers rather than headquarters become responsible for the overall success of the MNC. Transaction analysis is used to uncover hidden assumptions, communication strategies and behavior in headquarters–subsidiary relationships.