Governing Entrepreneurial Opportunity Recognition in MNEs: Aligning Interests and Cognition Under Uncertainty

Authors: Mahnke, Volker; Venzin, Markus; Zahra, Shaker A.

Source: Journal of Management Studies, Volume 44, Number 7, November 2007 , pp. 1278-1298(21)

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Abstract:

Entrepreneurial activities contribute to the innovativeness and performance of subsidiaries and their parent multinational enterprises (MNEs). Though a strong multinational presence can spur the discovery and exploitation of entrepreneurial opportunities, it also creates uncertainty that complicates the alignment of cognition and interest in the governance of MNEs' multi-level entrepreneurial activities. We integrate economic and behavioural approaches to identify communicative, behavioural, and value uncertainties encountered in the MNEs' opportunity recognition phase. In addition, we discuss key contingencies that influence solutions to these uncertainties through delegation of authority, provision of incentives, promotion rules, and use of clan structures.

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-6486.2007.00730.x

Affiliations: 1: Copenhagen Business School; Bocconi University and Steinbeis University; University of Minnesota

Publication date: 2007-11-01