Achieving the internal transfer of best practices : A case study of how middle managers’ absorptive capacity is influenced by social integration mechanisms with headquarters

Sammanfattning: Research question: What influence does headquarters´ social integration with middle managers have on the receiving unit´s absorptive capacity? Purpose: This study aims to investigate how middle managers within the subsidiaries of a multinational corporation perceive their social integration with headquarters. It is in the interest of this thesis to explore how best practices transferred from headquarters are exploited by middle managers and how social integration mechanisms influence the building blocks of their individual absorptive capacity: motivation, opportunity, and ability. This study further attempts to elucidate what absorptive capacity entails for the middle managers and how it can be improved by social integration between them and headquarters. Method: A qualitative research method involving in-depth, semi-structured interviews with middle managers of one corporation was conducted to collect the data. The middle managers’ relevance depended on their responsibility and previous experience of receiving a best practice. A theoretical framework depicting motivation, opportunity, and ability was developed to carry out the subsequent analysis. Conclusions: The finding suggests that middle managers´ absorptive capacity, meaning their motivation, opportunity, and ability, is influenced by the social integration mechanisms between them and headquarters. Also, middle managers’ arduous relationship with headquarters influences their exploitation of best practices, and consequently, the findings suggest certain solutions related to social integration mechanisms on how to avoid that. The thesis supplement current theory on individual absorptive capacity as the findings provide an in-depth understanding of what the building blocks entail and how social integration mechanisms influence the middle managers´ exploitation when transferring best practices.