The Effect of Headquarter Integration Mechanisms on Subsidiaries’ New Product Success: From Control to Coordination Mechanism  

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Jenis: Article from Journal - ilmiah nasional - terakreditasi DIKTI
Dalam koleksi: The South East Asian Journal of Management vol. 1 no. 2 (Oct. 2007), page 191-212.
Topik: New Product Launching (NPL); Coordination Mechanism; Control Mechanism; New Product Performance

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS54.1 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

New product launching (NPL) to the local market by subsidiary managers is a strategic activity which requires organizational supports from MNC global network. The NPL activity is marked by high level of uncertainty, risk, and market failure. Thus, a headquarter needs to integrate the subsidiary NPL into global strategy. There are two mechanisms to integrate subsidiaries’ activities during NPL process; coordination and control process. By testing the effect of each mechanism on role clarity and functional conflict, I found that coordination mechanism increase role clarity between headquarter and subsidiaries ‘managers. In contrast, exercising control mechanism reduces role clarity andfunctional conflict between headquarter and subsidiaries ‘managers during NPL. This research shows that both role clarity and functional conflict increase new product commercial performance introduced by subsidiary in the local market.

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