Appendix a Definitions of Collaboration
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Cranfield University Morgan C. Chambers Dynamic, inter-subsidiary relationships of competition and collaboration School of Management PhD Thesis Academic Year: 2014-2015 Supervisor: Dr. Colin Pilbeam March 2015 Cranfield University School of Management PhD Thesis Academic Year 2014 – 2015 Morgan C. Chambers Dynamic, inter-subsidiary relationships of competition and collaboration Supervisor: Dr. Colin Pilbeam March 2015 This thesis is submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy © Cranfield University 2015. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright owner. ABSTRACT Horizontal relationships between subsidiaries within an MNC are rarely shown on an organisation chart but the interactions along this dimension are critical to the achievement of an MNC’s global operations and strategic activities. Different interaction logics of social relationships and economic exchanges in horizontal relationships induce simultaneous competition and collaboration between the subsidiaries. Collaboration and competition is a business reality in inter-subsidiary relationships as they collaborate to share resources and knowledge, but ultimately compete for resources, customers and profits. While much research has focused on the effects of internal collaboration, and to a lesser extent internal competition, on organisational performance, little is known about the antecedents of competition and collaboration and the interplay of simultaneously occurring interactions. By focusing on one or the other, any understanding of the inherent tensions between the two is overlooked. This research explores the coopetitive nature of the inter-subsidiary relationship using a qualitative approach within three MNCs, where internal competition and collaboration are more salient. Data were gathered from 98 semi-structured interviews with top and senior management, top management focus groups and a body of secondary data including internal reports, policy documents and external publications, among others, has been referenced. The study makes three key contributions. First, by extending Luo’s (2005) theoretical model of intra-MNE coopetition, the study identifies additional respective antecedents of competition and collaboration. Second, the study locates inherent tensions arising from inter-subsidiary coopetition and explicates how the tensions are managed by the HQ and subsidiaries using spatial, balancing and assessing mechanisms and specific interventions. Third, the study offers an empirically-based model of inter-subsidiary coopetition with a more dynamic and temporal set of multiple relationships among the subsidiaries within the MNCs. Management implications include that senior management teams be aware of the opportunities and constraints of promoting a culture of collaboration while simultaneously fostering inter-subsidiary competition through i internal accounting policies and incentive systems, and that the capability of senior managers to work effectively within dual organisational structures be developed and incorporated into executive development programmes. Keywords: competition, collaboration, intra-MNC coopetition, tensions, dynamic ii ACKNOWLEDGEMENTS There are moments in life when you just take the bull by the horns and go for it. No one said that pursuing a doctoral level of study was going to be easy. If they had, I wouldn’t have believed them anyway. But, nothing worthwhile is ever easy. This has been my experience during my PhD. Very early on I likened the PhD to running a marathon. However, I had no idea how many times I would ‘hit the wall’. Every time I did, the enduring support of family, friends and colleagues was amazing; enthusiastically cheering me on to pick myself up, carry on and head towards the finish line. Having reached the finish line, it is now time to stop and personally thank those who have followed my progress from the early training days to completion. I extend my heartfelt gratitude to my sanguine, no-nonsense, supervisor Colin Pilbeam who, amidst all my turmoil and doubt, has always been extremely encouraging, constructively challenging, upbeat, responsive, and a 100% supportive. His confidence has been particularly infectious during some rather concerning moments, i.e. when ‘no access, no data, no PhD’ was a possible result. His concise, clear thinking perfectly complemented my more expansive, circular views. He was there to make sure that ‘the job got done’. Thanks Colin, job done! I thank my colleagues at the Cranfield School of Management, academics, staff and fellow PhD students. My work greatly benefitted from the advice of my PhD panel members, Cliff Bowman and Patrick Reinmoeller. I was privileged enough to be among academics who, without exception, gave their time and advice willingly to address any query, provide helpful references, and listen as I explored speculative thoughts. Thank you for sharing your knowledge and experience. Also, thank you Wendy Habgood as well as Irena Pidlyskyj, Sandra Bettison and Alison Wilkerson from the research office for their expert guidance throughout the PhD process and librarians Mary Betts-Gray and Heather Woodfield, who made literature search sound like fun. I am also grateful to the staff at Mitchell Hall. It became ‘my home away from home’ when visiting Cranfield. I always looked forward to my ‘breakfast at Tiffany’s’. iii My PhD cohort and friends at Cranfield have been amazing and extremely supportive and will forever be an integral part of my PhD experience: Te, Richard, Angela, Minjie, Guy, Shelly, Martin, Kamran, Manny, Claus. We laughed with, and supported each other through all our ups and downs. Other PhD colleagues—those who graduated before we did: Alessandro, Patricia, Rea, Joana and Doyen, and those who followed: Oxana, Farooq, and Anandadeep - thank you for your friendly support. Thanks Ben Meehan for the excellent training in the use of NVivo 10 that became the ever growing repository for my literature, transcripts, codes, categories, annotations, memos, patterns and themes and that resulted in over 600 MB of data. I want to extend special gratitude to the early supporters, from my pre-PhD life. Bruce Jamieson, my supervisor for the Masters Programme in Industrial and Organisational Psychology at the University of Canterbury, NZ; Glenn Kaufman, my ‘boss’ at American Express; and Steve Holliday, the CEO at National Grid. ‘I’m done’. My uncle, Dr. Keith Pickens, unknowingly inspired me to the possibility, just as someone else in the family did before. Mum, thank you for everything that has led me here. My personal dream and possibility have been realised. There are special people in your life who are not able to stand at the finish line to cheer you on. I thank the following for their presence in my life and who encouraged me to pursue my dreams and take that first step. May they rest in peace: my dearest father, Arthur Chambers; my grandmother, Betty Pickens; my great aunt, Peg Ryan; my sister- in-law, Helen Chambers; my mentor, Emeritus Prof. John Stopford; and my business colleague, ‘mad John’ Sanders. Not forgetting the individuals and communities who reignited my dream and prepared me well: thank you Judith Johnson, John Lazar and Bob Dunham. My CEOTM learning colleagues and friends were a constant source of encouragement. Regula, Sylvana, Liz and Robin (PhD), you never doubted me, even in the times I doubted myself, and graciously accepted my retreat from your lives during this period. Helene, thank you for the moments of peace and respite you offered through our discussions on our walks amidst the fresh air and calming surroundings of Wisley Gardens. iv My sincere gratitude goes to the Chairman, Group CEOs and the senior management at my three research companies, who so generously gave their valuable time. You graciously provided me with extensive access to your organisations, which provided such rich insights for my research and hopefully, your organisations. Last but not least is my family for the sacrifices they have made and all that they put up with just so that I could pursue my long-held desire to explore this enduring topic of interest. For more than four years, I was cushioned in a bubble of books, thoughts and words. To Antony, Harrison, Madeleine and Jeremy, I am eternally grateful for the space you created. No words can really capture my gratitude for your tolerance, especially in times when I was a little unreasonable and totally selfish in pursuing my goal. I have missed you all. Antony, you are the wind beneath my wings and constantly got me back up flying. ‘I’m back’. I end here with lines from Gordon MacKenzie’s (1985) ‘Orbiting the Giant Hairball’ which I liken to my work as I was drawn into the messy world of qualitative research: If you go to your grave without painting your masterpiece, it will not get painted. No one else can paint it Only you v TABLE OF CONTENTS ABSTRACT ...................................................................................................................... i ACKNOWLEDGEMENTS ............................................................................................ iii LIST OF FIGURES ........................................................................................................ xii LIST OF TABLES ........................................................................................................ xiv LIST OF ABBREVIATIONS ......................................................................................