The ability to leverage organizational practices throughout the organization is a major concern in multinational companies (MNC). Although prior research has explored organizational practice adoption in the MNC, it has largely neglected the roles of individuals who adopt the practices and their specific situational contexts. We introduce trait activation theory as a novel theoretical lens to study how managers’ personality traits affect organizational practice adoption. Specifically, we develop and test a model of the impact of managers´ core self-evaluations on organizational practice adoption. Then, we specify the contingent roles of formal and informal controls. Using a proprietary dataset comprising of 130 practice adoption cases combined with unique personality data, we find sound empirical evidence to suggest that formal and informal controls play different roles in the activation of subsidiary managers’ personality traits. Our theory and empirical results provide novel insights into the relationship between managers’ personality traits and the organizational context in the adoption of organizational practices, as well as the interplay of trait activation and situation strength theories in practice adoption.
Read full abstract