Managing service subsidiaries through an innovation perspective: a case of standard interpretation in multinational hotels

Abstract

This empirical study suggests a framework to understand an interpretation of standard operating procedures (hereafter referred to as standards) in affiliated hotels by considering how affiliated hotels interpret the standards developed by their headquarters (HQ) and why these agents sometimes depart from the standards by their principal. The interpretation of standards in subsidiaries is investigated by analysing qualitative data through three-multinational hotel groups and their affiliated hotels located in the UK and Thailand. Through an innovation adoption and a transfer of best practices, this study offers a new perspective as it sees global standardisation and local adaptation as a process of negotiation. Because of negotiation and approval in the interpretation process, tensions between global standardisation and local adaptation, and between the HQ and subsidiaries are expected to be reduced.