Authors: RMadureira;
This study attempts to extend current knowledge of inter- and ultra-firm relationships in industrial markets. In particular, the study seeks to illuminate the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed are: 1) what factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? and 2 j how such personal contacts enable coordination in industrial markets and within multinational corporations?
The theoretical context of the study is based on: 1) the interaction approach to industrial markets, 2) the network approach to industrial markets, and 3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. A contact network is conceptualised as encompassing "formal"" and "informal"" contacts within the multinational corporation as well as "private" and "business" contacts in the industrial market. The study is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national.
The study suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The study thus suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the study suggests eight propositions on how the functions of foreign subsidiary managers' personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.
Keywords: coordination, industrial markets, multinational corporations, foreign subsidiary managers, personal contacts, qualitative research
Publish Year: 2004