MNE subsidiaries’ adoption of gender equality and women empowerment goal: A conceptual framework

Abstract

This article explores the possible response types of multinational enterprise (MNE) subsidiaries in adopting the gender equality and women empowerment goal, number 5 of the 17 United Nations Sustainable Development Goals (SDGs). MNE headquarters’ commitment to gender equality does not necessarily get translated to their subsidiaries’ priority because of the strategic value the subsidiaries see and the legitimacy pressure they experience. Drawing on institutional theories and the literature on the transfer of organizational practices in MNEs, we propose a two-dimensional (value added to strategy and legitimacy pressure) framework describing four major types of subsidiary response – resistance, compliance, conformity and commitment. Understanding these response categories would help global agencies and host-country governments adjust their efforts to enhance local legitimacy for SDG adoption. Our simple typology could also facilitate scholarly and practical discussion. We end our discussion with some suggestions for future research.