Examining Organizational Identity in a Multinational Company: An Exploratory Study of the Role of National Culture in Two Subsidiaries
Open AccessThe purpose of the study was to examine the concept of organizational identity in the context of multinational subsidiaries based in different countries. Multinational corporations (MNCs) have increased their operations overseas to remain competitive and tap new capabilities. Researchers have argued that MNCs are often pressured to align their practices across subsidiaries while exercising flexibility and accommodating local practices, especially since subsidiaries are embedded in their national cultures. In this qualitative study, a conceptual model by Hatch and Schultz (2002) was revised to incorporate the role of national culture in the formation of organizational identity in MNC subsidiaries. Data were gathered using a case study consisting of two subsidiaries through interviews, focus groups and documentary evidence. Results revealed that the identity claims within the two subsidiaries were fairly consistent with the headquarters, despite the national culture differences. However, there were subtle differences in the identity claims that can be attributed to the role of national culture. Based on the findings from this study, several conclusions are offered. Implications for research and practice are also discussed.
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