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Faculty Research

Multinational Corporations


Management for Success in the Global Marketplace

Dr. Kendall Roth, J. Willis Cantey Chair for International Business and Economics and chair of the Sonoco International Business Department, and Dr. Tatiana Kostova, associate professor of international business and Moore research fellow at the Moore School of Business, are collaborating on a series of research projects that examine critical issues of management of multinational corporations (MNCs). Their research can inform international managers on how to leverage organizational competencies and achieve competitiveness on a global basis. 

Kostova’s and Roth’s most-cited research is the study of transfer of organizational practices from MNC corporate headquarters to their foreign subsidiaries. They find that transfer success is influenced by the institutional environment of the host country, including its regulations, social knowledge, and culture, as well as the institutional differences between the home and host countries. Their research further shows that such institutional barriers can be overcome by building quality relationships between MNC headquarters and its subsidiaries. Companies in which subsidiary managers are committed to, identify with, and trust the corporate office have a much more positive attitude to adopting practices and sharing knowledge across units.  

A related stream of research is the study of social capital in MNCs with a focus on the quality of the relationships between the different units of multinationals. Kostova and Roth have developed models of social capital formation explaining the ways in which MNCs can facilitate building mutual trust, commitment, and reciprocity. They have argued that social capital and networks are crucial for the effective management of complex organizations such as MNCs, especially for knowledge-related tasks like knowledge sharing and global research and development initiatives.

The research of professors Roth and Kostova has been widely recognized. It appears in the top management and international business journals in the world, including Academy of Management Review and Academy of Management Journal. They have both served or are serving as reviewers, editors, and members of the editorial review boards of a number of leading academic journals and as officers in professional academic associations.