Abstract

Increased research focus on the networked perspective of the MNE reflects a greater delegation of responsibility from corporate headquarters (CHQ) to subsidiary and intermediary units such as regional headquarters (RHQ). This shift has increased the intensity of political interactions between key actors within the MNE. Despite the recent rise in studies on the micro-political perspective of the MNE, to date little empirical work has explored this issue in the context of the CHQ-RHQ relationship. Drawing insights from agency theory and micro-politics, we focus on the context in which RHQs develop micro-political strategies in order to manage the flow and exchange of knowledge with CHQ. We show how RHQ may exhibit a ‘dual agency’ role when dealing with CHQ, in that it is characterised as a principal and agent, each requiring different micro-political knowledge strategies. As a principal, RHQ will develop micro-political knowledge strategies to increase alignment with CHQ. As an agent, RHQ develops micro-political knowledge strategies to pursue its own self-interests. Having identified different RHQ agency roles, we develop a conceptual model that outlines how alignment and self-interest seeking behaviours from RHQ manifest through different micro-political knowledge strategies in its agency relationship with CHQ.