Executing energy transition strategy in a multinational context: a case study across headquarters and regional subsidiaries
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2025-06-19
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Carneiro, Jorge
Šilenskytė, Aušrinė
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As the urgency of the global energy transition intensifies, multinational energy companies increasingly face the challenge of executing strategies aligned with sustainability goals effectively across diverse geographic and institutional contexts. While existing literature extensively covers strategy formulation and sustainability objectives, there remains a notable gap regarding how multinational corporations (MNCs) practically execute sustainabilityrelated strategies, particularly in balancing structural control with adaptive responsiveness across headquarters and regional subsidiaries. This study addresses this gap through a qualitative case study of a European multinational energy company and two of its regional subsidiaries (Asia Pacific and Europe). By examining the interplay of structural control mechanisms and adaptive enactment in strategy execution, the research uncovers key factors influencing effective implementation of sustainability-related strategies within a multinational organization. Key findings indicate that successful execution relies on a dynamic balance between centralized governance frameworks and context-sensitive, adaptive practices driven significantly by subsidiaries’ managers. Subsidiaries demonstrate active agency, engaging in local sensemaking and strategic adaptation to navigate regulatory complexities and align stakeholder expectations while catering to headquarters’ objectives. This research contributes to existing knowledge by highlighting the critical role of the interaction between top-level decision-makers and middle managers in forging integration of two perspectives to strategy execution (structural control view and adaptive approach) and by underscoring how such interaction is manifested in a multinational company and how the implementation of sustainability-related strategies in particular requires such integration .