Antecedents of psychological attachment in multinational enterprises

• Published in: Multinational business review 2020-04, Vol.28 (1), p.87-107
• Main Authors: Vora, Davina, Kostova, Tatiana
• Format: Article
• Language: English
• Subjects: Affect (Psychology); Collectivism; Communication; Employees; Identification; Influence; Multinational corporations; Self esteem; Social exchange theory
• ISSN: 1525-383X; 2054-1686
• DOI: 10.1108/MBR-04-2019-0026

Purpose This paper aims to examine the individual-level headquarters–subsidiary relationship issue of psychological attachment in multinational enterprises (MNEs). Antecedents to subsidiary manager identification and commitment to the MNE and subsidiary are explored. Design/methodology/approach Those in subsidiary manager roles regardless of country of origin were surveyed. Hypotheses were tested using partial least squared structural equation modeling. Findings For both MNE and subsidiary models, perceived prestige related to commitment. All components of positive interaction related to subsidiary commitment (but not identification), while just one related to MNE identification and commitment. For the MNE model only, collectivism positively related to identification and commitment, cultural distance positively related to commitment, geographic distance negatively related to commitment, and language similarity marginally negatively related to commitment. Organization-based self-esteem (OBSE) partially mediated relationships of perceived prestige and positive interaction with commitment in MNE and subsidiary models. Research limitations/implications This microfoundational approach to psychological attachment in an MNE setting suggests similarities and differences for antecedents in MNEs and subsidiaries, as well as the importance of OBSE. This study is limited by its exclusion of other antecedent variables and types of attachment, and a cross-sectional study design. Practical implications MNEs can increase psychological attachment by communicating the importance of the MNE and/or subsidiary, developing processes to improve interactions with other organizational units, and demonstrating that employees are valued. Originality/value Exploration of the individual-level of analysis of headquarters–subsidiary relationships is rare, and different findings for the MNE and subsidiary are highlighted, something that is not fully explained by current research on psychological attachment.