Informal, Formal or Hybrid – How Expatriates in European MNC
Subsidiaries in South Korea
Manage Hierarchy to Enhance Organizational Agility.
Horak, S., Jiang, C., & Festing, M., 2025. Informal, Formal or Hybrid – How Expatriates in European MNC Subsidiaries in South Korea Manage Hierarchy to Enhance Organizational Agility. International Journal of Manpower, forthcoming. DOI: https://doi.org/10.1108/IJM-03-2024-0155
Abstract
We examine managerial practices in the South Korean subsidiaries of European
multinational companies (MNCs) to understand how they navigate hierarchical
structures during periods of organizational transition. Drawing on an
institutional perspective, we explore the nature of hierarchy and the interplay
between different forms of hierarchy in enabling more agile organizational
structures. This study employs a qualitative research design based on 32
in-depth interviews with expatriates in top- and middle-management positions in
European subsidiaries operating in South Korea. Our findings suggest that
organizational hierarchy should not be understood solely as a formal structure.
Rather, as an institutional construct, hierarchy can encompass both formal and
informal elements that interact in dynamic ways. These interactions often lead
to hybridization across a continuum, prompting us to propose the concept of
organizational hierarchy as a hybrid institution. Existing research has
highlighted a gap in understanding how informal institutions interact with
formal ones within organizational hierarchies. Our study addresses this by
showing that informal institutions can reinforce hierarchical structures aligned
with societal norms while undermining those that deviate from them, producing
both functional and dysfunctional effects.
Agile Organization, Change Management, Cross-cultural Management, Formal
Institution, Hybrid Institution, Informal Institution, MNC Subsidiary,
Organizational Hierarchy, Social Hierarchy.