Normative control in MNC

Purpose – The purpose of the chapter is to introduce an actor-centered conflict perspective into research on multinational company (MNC) coordination. We first develop a theoretical framework of conflictual processes in MNC coordination and then use an empirical study of a German MNC in Japan to illustrate how cultural coordination in MNC subsidiaries triggers conflict processes.

Methodology/approach – The chapter integrates conflict theory and models of MNC coordination. The empirical study is based on qualitative data.

Findings – Coordination programs in MNC such as cultural integration through shared values lead to substantial conflictual processes. Local actors apply micro-political tactics to resist, delay or adjust coordination instruments developed by MNC headquarters.

Originality/value of chapter – The chapter applies conflict theory to MNC coordination issues, a field of research which so far is dominated by contingency approaches.