Deglobalization and the emergence of confederated communities

Purpose This study examines how multinational corporations (MNCs) navigate the tension between centralization and decentralization amidst a recent wave of deglobalization, fueled by rising protectionism across the world. Design/methodology/approach The study examines globally active B2B technology companies that operate wholly-owned subsidiaries. It adopts a qualitative, multi-method approach, combining a six-month ethnography, a case study, 18 interviews with C-level and senior executives and 2 focus groups. Findings To rebalance centralized and decentralized structures, MNCs increasingly implement confederated communities, which are semi-autonomous, interconnected groups that handle marketing functions. Confederated communities enable companies to better address local market demands while managing the complexities associated with deglobalization and other disruptors. Originality/value This study introduces confederated communities as an emerging structural approach in MNCs. Confederated communities can be interpreted as a novel microfoundation of dynamic capabilities, which has implications for the literature streams on subsidiary autonomy, adaptation vs standardization, marketing agility and paradoxes. Furthermore, this study provides a practical framework for managing centralization–decentralization tension amidst deglobalization.