What happened to MNC’s Learning Mechanisms? : The Impact of Digitalization among Distantly Located Subsidiaries

University essay from Linköpings universitet/Institutionen för ekonomisk och industriell utveckling; Linköpings universitet/Filosofiska fakulteten

Abstract: Digitalization may have opened up the scope of easy remote interaction among companies, but it has also brought the unwanted baggage of "distance", especially those who have a large number of subsidiaries spread all over the continents. Taking this into consideration, it has been seen that multinational companies (MNCs) who have their subsidiaries around the globe face challenges to share their learnings among them. This means on one side digitalization enables integration efficiently within those who share similarities and also with the stakeholders in the local environment. On the other side, digitalization created a detachment among subsidiaries who are distantly located. Subsidiaries learned new skills and adapted new routines based on their local environment while going through the transition of digitalization. It can be seen that sharing of these learnings between the subsidiaries were impacted due to this transition. But with the MNCs, reaping the benefits of digitalization, they are ready to take the next step of switching somewhat permanently, a hybrid work culture, which includes digitalization of many in-person interactive events and training. The focus of this dissertation is to analyze the challenges MNCs will face while building learning mechanisms especially among those subsidiaries that are distantly located. Along with it the needs that are evolving from within the MNCs have been identified because, if they are attended efficiently it will facilitate to overcome these challenges. 

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