Transfer of Organizational Practices. The influence of institutional environments and individual agents

Abstract

This study contributes to the understanding of the headquarters (HQ) - subsidiary relationship by investigating the transfer of organizational practices, employing an institutional perspective. In institutional theory, it is recognized that how practices are transferred and adopted will be affected by the institutional environments where the HQ and its subsidiaries are located. By adhering to recent developments within institutional theory, this study examines the role and mindset of individual agents in the transfer of organizational practices across different institutional environments. To accomplish this interest, a multiple case study investigating the transfer of four organizational practices from the HQ to three different institutional environments is presented. This study found evidence of the existence of certain agents, who were especially influential in the transfer process. Depending on the perceptions and motivations of such agents, they could both act as facilitators, and be potential gatekeepers, to the transfer of the practices. Evidence was also found to confirm that the regulatory, normative and cognitive pillars of the local institutional environment affected how the practices were perceived and how they were adopted.