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Headquarters Control and Its Legitimation in a Chinese Multinational Corporation: The Case of Huawei
Hong, Jacky F.L.1; Snell, Robin Stanley2,3
2021-12-04
Source PublicationManagement and Organization Review
ABS Journal Level3
ISSN1740-8776
Volume17Issue:5Pages:1043-1086
Abstract

Based on interviews and documentary analysis, we analyzed the mechanisms being adopted by the HQ of Huawei, a Chinese MNC, for controlling the outputs and processes of its foreign subsidiaries and social behaviours within them and how these controls were supported by corresponding strategies of legitimation. The controls comprise key performance indicators, standard operating procedures, divided subsidiary mandates, HQ-centric rotational expatriation, military-style induction, public oath-taking and self-criticism ceremonies, and training in and role-modelling of core values. The HQ provides comprehensive legitimation for each of these control mechanisms, drawing on five strategies of legitimation, which comprise espousals of organizational benefits, inducement, affirmation, moral exhortation, and narrativization. In many cases, the legitimizing statements have been provided by Mr. Ren, Huawei's founder and CEO, whose authority appears to have been important in conferring legitimacy to the HQ. The historical path of Huawei's development as an MNC has also been salient in conferring legitimacy to the HQ. Our findings suggest that interviewees regard the controls as legitimate, that the subsidiaries broadly comply with the controls, and that micro-political contestation is largely absent.

KeywordChinese Mncs Control Mechanisms Hq-subsidiary Relationships Legitimation Qualitative Methods
DOI10.1017/mor.2021.23
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectManagement
WOS IDWOS:000734916100010
Scopus ID2-s2.0-85113369297
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Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF MANAGEMENT AND MARKETING
Corresponding AuthorHong, Jacky F.L.
Affiliation1.University of Macau, Macao
2.Lingnan University, China
3.Hang Seng University, Hong Kong
First Author AffilicationUniversity of Macau
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Hong, Jacky F.L.,Snell, Robin Stanley. Headquarters Control and Its Legitimation in a Chinese Multinational Corporation: The Case of Huawei[J]. Management and Organization Review, 2021, 17(5), 1043-1086.
APA Hong, Jacky F.L.., & Snell, Robin Stanley (2021). Headquarters Control and Its Legitimation in a Chinese Multinational Corporation: The Case of Huawei. Management and Organization Review, 17(5), 1043-1086.
MLA Hong, Jacky F.L.,et al."Headquarters Control and Its Legitimation in a Chinese Multinational Corporation: The Case of Huawei".Management and Organization Review 17.5(2021):1043-1086.
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