Governing Entrepreneurial Opportunity Recognition in MNEs: Aligning Interests and Cognition Under Uncertainty

21 Pages Posted: 9 Nov 2007

See all articles by Volker Mahnke

Volker Mahnke

Copenhagen Business School - Department of International Economics & Management

Markus Venzin

Bocconi University - Department of Management and Technology

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management

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.

Suggested Citation

Mahnke, Volker and Venzin, Markus and Zahra, Shaker A., Governing Entrepreneurial Opportunity Recognition in MNEs: Aligning Interests and Cognition Under Uncertainty. Journal of Management Studies, Vol. 44, No. 7, pp. 1278-1298, November 2007. Available at SSRN: https://ssrn.com/abstract=1028409 or http://dx.doi.org/10.1111/j.1467-6486.2007.00730.x

Volker Mahnke (Contact Author)

Copenhagen Business School - Department of International Economics & Management ( email )

Frederiksberg, 2000
Denmark

Markus Venzin

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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