- 日本経営学会誌 (ISSN:18820271)
- vol.36, pp.38-48, 2015 (Released:2017-03-23)
This study aims to reconsider about the negative impact of organizational socialization on subsidiary companies of multinational corporations (MNCs). International research has repeatedly demonstrated that the process of organizational socialization when adopted in a foreign subsidiary setting has positive effects on various areas of its organizational performance. Hence, organizational socialization is largely used by a parent company as one of the tools for controlling a subsidiary.
An analysis of six Japanese MNCs in the emerging markets reveals that organizational socialization has both negative as well as positive impact. Subsidiaries encounter difficulties in implementing strategies when they experience intensive promotion of the organizational culture of their parent companies. Considering the significant cultural and economic differences between the headquarters and the subsidiary, the subsidiary personnel cannot easily adapt the parent company’s culture to their local workplace environment.
From these considerations, we add a new understanding about the influence of organizational socialization and give a proposition that organizational socialization brings a tradeoff between knowledge transfer and subsidiary innovativeness.