Leadership capabilities that enable the identification of MNE opportunities in emerging markets

Abstract

Subsidiary entrepreneurial activities continue to be highly valued strategic levers for subsidiary growth and performance, and as a result, they contribute to the enhancement of the value of the Multinational Enterprise (MNE) network. Leadership continues to be viewed as important in driving subsidiary entrepreneurship. However, there remains a paucity of studies on the actions of individuals with regard to subsidiary entrepreneurial initiatives. The aim of this study was to understand how leadership capabilities enhance the behaviour of the identification of multinational enterprise opportunities operating in emerging markets. A qualitative study was conducted based on 18 individuals working in multinational enterprises operating in emerging markets based in the African continent. The 18 individuals comprised 12 senior leaders and six junior leaders who were referred to as subordinates. They revealed that the extent to which leaders are able to facilitate entrepreneurial initiatives is dependent on a broad understanding of subsidiary entrepreneurship, an aligned and supportive multinational enterprise environment, as well as the existence of supporting headquarters and decision-making autonomy, all of which are working in concert to facilitate entrepreneurial initiatives. Furthermore, the critical role played by leadership in bringing everyone together to focus on increasing the performance of the subsidiary is emphasised. The study makes a significant contribution to the understanding of the leadership capabilities that foster and stimulate subsidiary initiatives in an emerging market context.