Organizing for dual strategies of product diversity and international expansion

Abstract

This study examines organization structures of 37 large U.S. multinationals which are both highly diverse and heavily involved abroad. The findings show that the international division is still the most popular structure for this form of enterprise. However, Several other structures are also found to be in common use. An attempt is made to relate use of these structures to such strategic variables as extent of vertical integration, R & D intensity, level of foreign sales and method of diversifying.

Goal configuration in a global industry context

“…Firm internationalization was defined by the percentage of total sales that are earned abroad. This measure was consistent with the operationalization used by Garnier (1982) and has also been used to indicate foreign commitment (Cray, 1984), the extent of foreign activity (Daniels et al, 1984), and foreign dependence (Daniels, Pitts, and Tretter, 1985).…”

Success Factors of Regional Strategies for Multinational Corporations

“…The structure-stadium model has been largely confirmed and, in some cases, extended by subsequent research (Daniels et al 1984(Daniels et al , 1985Davidson and Haspeslagh 1982;Egelhoff 1982Egelhoff , 1988aFranko 1976;Pla-Barber 2002), while supporting its underlying principle of a fit between strategy and structure (Pla-Barber 2002: 154;Wolf and Egelhoff 2002: 182). However, the structurestadium model has been criticized regarding four aspects.…”

Core business regulation and dual diversification patterns in the telecommunications industry

“…Though the concept of diversification differs between these disciplines, agreement exists that a firm's tendency to multinationality is due to some hinderance in its domestic market growth program. IB researchers have explored the issue of dual product and international diversification suggesting that these simultaneous efforts may be managed through global organizational structures (Daniels, Pitts, and Tretter, 1985;Egelhoff, 1988). Extending and validating Rumelt's (1974) findings regarding related product diversification and performance, Geringer, Beamish, and daCosta (1989) found related product diversification overseas to be positively correlated to firm performance.…”