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Global StrategyCreating and Sustaining Advantage across Borders$
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Andrew Inkpen and Kannan Ramaswamy

Print publication date: 2005

Print ISBN-13: 9780195167207

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195167207.001.0001

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Global Strategy and Organization

Global Strategy and Organization

(p.54) 3 Global Strategy and Organization
Global Strategy

Andrew Inkpen (Contributor Webpage)

Kannan Ramaswamy (Contributor Webpage)

Oxford University Press

This chapter extends the discussion of strategic approaches by focusing on the organizational demands of global strategies, with an emphasis on MNE structural choices. It begins with a case study to provide an example of the variety of organizational options available to MNEs. It then discusses national responsiveness and global integration as conflicting imperatives. The challenges associated with MNE organizational change from country-centered to globally-oriented is examined, followed by a discussion of the evolution of MNE organizations and the emergence of the transnational concept as an organizing model. The strategy and role of the MNE subsidiary is examined along with a discussion of the reasons why the traditional country-based authority and power of subsidiaries is waning. The chapter concludes with some consideration of how the MNE of the future will manage the inevitability of increased organizational complexity.

Keywords:   structure, national responsiveness, localization, integration, subsidiary

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