The Contingent Nature of Conflict Handling : How Mne Subsidiaries Handle Conflicting Requirements from Internal and External Networks

Multinational enterprise (MNE) subsidiaries can leverage resources from internal and external networks. However, they often struggle with conflicting requirements from internal versus external networks. Prior studies have provided some insights into the mechanisms for handling conflicting requirements, but little is known about how conflicts can vary and its implications for conflict handling. To explore how MNE subsidiaries can handle such conflicting requirements, I conducted an in-depth case study of an MNE subsidiary, focusing on conflict incidents. I found that (1) the case subsidiary handled three types of conflict; (2) the subsidiary adopted three type-specific mechanisms and two non-type-specific mechanisms; and (3) these mechanisms were used to facilitate two different processes that depended on whether a principle existed for a conflict in the subsidiary. This study reveals the contingent nature of the diverse mechanisms and processes adopted by MNE subsidiaries to handle conflicts between internal and external networks. It shows how conflicting requirements can be handled effectively and efficiently. It also generates insights into headquarters-subsidiary relationships and decision making in MNEs