Table 2. Coordination of practices by... | Emerald Publishing

Table 2.

Coordination of practices by principles

	Coordination of practices by principles
Characteristic	- HQ needs to strive for control AND local adaptation. To balance these confronting needs, HQ sets a framework consisting of the principles of the management practice to which subsidiaries need to adhere. Within the framework (i.e. related to choices of tools and organisational structure), subsidiaries enjoy full freedom
Antecedents	- The contemporary nature of the MNC - The dominant institutional logic of a management idea - HQ’s ability to perceive the variety of components of the management practice - The idiosyncrasy of the management idea
Coordination mechanisms used	- Both formal (setting the framework) and informal (allowing for freedom regarding organisational structures and tools)
Advantages	- Increased chances of local internalisation and implementation - Low risk of not-invented-here syndrome/resistance - Essential component – principles – is aligned in the global organisation
Disadvantages	- HQ needs to ensure that subsidiaries stay within the framework and do not abuse the freedom; control is difficult and resource-demanding - Less integration compared to fully standardised practices

	Coordination of practices by principles
Characteristic	- HQ needs to strive for control AND local adaptation. To balance these confronting needs, HQ sets a framework consisting of the principles of the management practice to which subsidiaries need to adhere. Within the framework (i.e. related to choices of tools and organisational structure), subsidiaries enjoy full freedom
Antecedents	- The contemporary nature of the MNC- The dominant institutional logic of a management idea- HQ’s ability to perceive the variety of components of the management practice- The idiosyncrasy of the management idea
Coordination mechanisms used	- Both formal (setting the framework) and informal (allowing for freedom regarding organisational structures and tools)
Advantages	- Increased chances of local internalisation and implementation- Low risk of not-invented-here syndrome/resistance- Essential component – principles – is aligned in the global organisation
Disadvantages	- HQ needs to ensure that subsidiaries stay within the framework and do not abuse the freedom; control is difficult and resource-demanding- Less integration compared to fully standardised practices