MNC structure, complexity, and performance: Insights from NK methodology

Multinational Enterprise Organizational Structures and Subsidiary Role and Capability Development: The Moderating Role of Establishment Mode

Multinational enterprises (MNEs) develop structural configurations for managing their geographically dispersed and disaggregated activities. These structures can be classified as (a) simple headquarters configurations (involves corporate, regional, divisional headquarters and mandated units) involving few direct reporting relationships; (b) network organizations involving no direct reporting relationships; and (c) matrix configurations involving multiple reporting relationships. While these structures are built for handling various complexities and purposes, it is unclear how they influence subsidiary role and capability development. We hypothesize how these structures influence subsidiary development and propose a moderating role of MNE establishment mode on the direct structure-subsidiary development relationship. Based on data from 429 foreign subsidiaries in New Zealand, our results show that subsidiary development varies across the structures such that simple headquarters configurations experience the least opportunities to develop. While the matrix and network structures as complex configurations offer distinct paths to subsidiary development, subsidiaries managed under the former are more likely to follow the developmental path of networking and interunit learning, and the subsidiaries managed under the latter are more likely to follow the path of autonomy and innovation. Furthermore, the positive association of network structure with subsidiary initiatives and autonomy is stronger for greenfield subsidiaries, whereas the positive association of matrix structure with subsidiary mandates is stronger for acquired subsidiaries.

A modified NK algorithm based on BP neural network and DEMATEL for evolution path optimization of urban innovation ecosystem

In the new era, the key measure to accelerate the construction of smart city, so as to promote the modernization of urban governance system and governance capacity, is to establish a good urban innovation ecosystem, and guide its continuous evolution to the direction of the highest efficiency and the best performance. Focusing on solving the practical problem of “how the urban innovation ecosystem evolves”, this paper develops a NK algorithm using BP neural network and DEMATEL method. First, through literature research, constructing the urban innovation ecosystem including five subsystems of innovation talents, innovation subjects, innovation resources, innovation environment and innovation network. Then, taking Beijing as an example, the weights and the number of epistatic relationships of each subsystem in its innovation ecosystem are calculated by BP neural network and DEMATEL method, and the NK model is modified; on this basis, the fitness values corresponding to different states of the system are calculated using MATLAB software, and the optimal evolution path of Beijing innovation ecosystem is determined through the comparison of 100,000 simulation results. The results show that the optimal evolution path of Beijing's innovation ecosystem is to create a favorable environment and culture for innovation first; then increase the input of innovation resources; and then promote the development of innovation network assets; on this basis, cultivate, attract and retain innovative talents; and finally strengthen the construction of innovation subjects.

Organisational Structure and Project Success: The Mediating Role of Knowledge Sharing

This paper looks at the relationship among elements of an organisational structure (i.e. formalisation, centralisation and integration) with project success, and examines whether the relationships are mediated by knowledge sharing. There is limited understanding with regard to how various elements of organisational structure relate to knowledge sharing and project success. Taking a contingency approach and grounding our argument in the resource-based view of the firm, we show that certain elements of organisational structures have positive implications for the project organisation. We draw on survey data from 220 respondents serving in (public and private) project-based telecom service provider firms in Pakistan. Our results show that formalisation and integration are conducive to project success, but centralisation is negatively related to project success. Knowledge sharing mediates the relationship between integration and project success for both the public and private telecom firms, but in case of formalisation, knowledge sharing mediation exists only for the public firms. Based on these results, we draw some implications for theory and practice.