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Governing Entrepreneurial Opportunity Recognition in MNEs: Aligning Interests and Cognition Under Uncertainty*
Author(s) -
Mahnke Volker,
Venzin Markus,
Zahra Shaker A.
Publication year - 2007
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.2007.00730.x
Subject(s) - multinational corporation , business , incentive , corporate governance , promotion (chess) , industrial organization , subsidiary , delegation , value (mathematics) , cognition , foreign direct investment , shareholder , economics , microeconomics , management , computer science , psychology , political science , finance , machine learning , neuroscience , politics , law , macroeconomics
Entrepreneurial activities contribute to the innovativeness and performance of subsidiaries and their parent multinational enterprises (MNEs). Though a strong multinational presence can spur the discovery and exploitation of entrepreneurial opportunities, it also creates uncertainty that complicates the alignment of cognition and interest in the governance of MNEs' multi‐level entrepreneurial activities. We integrate economic and behavioural approaches to identify communicative, behavioural, and value uncertainties encountered in the MNEs' opportunity recognition phase. In addition, we discuss key contingencies that influence solutions to these uncertainties through delegation of authority, provision of incentives, promotion rules, and use of clan structures.