Governing entrepreneurial opportunity recognition in MNEs: Aligning interests and cognition under uncertainty

Volker Mahnke, Markus Venzin, Shaker A. Zahra

Research output: Contribution to journalArticlepeer-review

45 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)1278-1298
Number of pages21
JournalJournal of Management Studies
Volume44
Issue number7
DOIs
StatePublished - Nov 1 2007

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