Strategy, structure, and performance of U.S. manufacturing and service MNCs: A comparative analysis

Abstract

This study analyzes the strategy-structure fit and its effect on the economic performance of 144 US. manufacturing and service multinational corporations (MNCs). The results indicate that MNCs, irrespective of being services or manufacturing, choose their organization structure consistent with the theoretical fit prescription for the kind of strategy they are pursuing. However, the strategy-structure fit had no effect on service M N C economic performance. With manufacturing MNCs, mixed results regarding the fit-performance linkage were found. Based on the findings, implications and directions for future research are suggested.With the complexity and growth of international business, the study of multinational corporations (MNCs) has become extremely important. Most MNCs are operating in markets where the competition is intense and the competitors are large. To succeed in these markets, MNCs must successfully implement their strategies to provide them with a competitive advantage.Galbraith (1977) suggests that strategy implementation requires a 'fit' between strategy and organization design. Fit has been described by Miles and Snow as: a process as well as a state . . . . . . a dynamic search that seeks to align the organization with its environment and to arrange resources internally in support of that alignment. In practical terms, the basic alignment mechanism is strategy and the internal arrangements are organizational structure and management processes (Miles and Snow 1984: 11).At the corporate level, research has focused on the fit of the overall structure of the organization

Efeitos da internacionalização sobre o desempenho de multinacionais de economias em desenvolvimento

“…A grande maioria dos estudos anteriores utilizaram o indicador Foreign Sales to Total Sales (FSTS), que consiste na proporção das vendas externas em relação às vendas totais, para indicar o grau de diversificação internacional ou o nível de transnacionalidade das empresas multinacionais (Capar & Kotabe, 2003;Grant, 1987;Habib & Victor, 1991;Tallman & Li, 1996). Entretanto, não há consenso entre os autores sobre a efetividade dessa variável, quando utilizada de forma isolada (Gomes & Ramaswamy, 1999).…”

“…A variável dependente foi representada pelo retorno sobre os ativos ou Return on Assets (ROA) para medir o desempenho das EMNs, semelhantemente ao que foi feito em vários estudos anteriores sobre a relação internacionalização-desempenho (C. W. Kim, Hwang, & Burgers, 1989;Grant et al, 1988;Haar, 1989;Habib & Victor, 1991;Hoskisson, 1987). O retorno sobre os ativos é um indicador que reflete a rentabilidade de uma empresa em relação ao seu total de ativos, indicando o quanto a gestão é eficiente na utilização do seu ativo total.…”

A reexamination and extension of international strategy–structure theory

“…While most strategy-structure theory has been empirically derived, some studies have used an information-processing perspective to conceptualize the relationship between strategy and structure (Egelhoff, 1982;Habib and Victor, 1991). Here the Organization is viewed as an information-processing system, where each type of structure facilitates certain types of Information processing between the subunits of an Organization, while at the same time it 4 restricts other types of Information processing.…”

Simultaneous Effect of Ownership and Economic Sector on the Performance of Enterprises in Vietnam

“…In addition to the impact of ownership factor, many studies have examined how economic sector or industry can specifically affect firm behavior through achieving economies of scale (Katrishen & Scordis, 1998) or economic performance (Habib & Victor, 1991). In fact, firm characteristics vary from one economic sector to another.…”