Network Embeddedness as a Determinant of Organizational Structure and Culture An Empirical Study
This paper explores the role of internal and external networks as determinants of organizational structure and culture in multinational corporations. We propose that subsidiaries' embeddedness within the corporation and in their external environment impacts resource configuration, headquarter power and entrepreneurial culture. Analyzing data obtained from 201 subsidiary managers and leading employees of a large German MNC with partial least squares structural equation modeling, we find support for a significantly positive effect of internal network embeddedness on subsidiary entrepreneurial orientation and resource specialization. The findings contribute to existing literature at the intersection of network theory, organizational design and subsidiary entrepreneurship.