The Multinational Enterprise as an Organization

Abstract

Changing models of multinational enterprise (MNE) organization over the last three decades of the twentieth century are surveyed and their theoretical underpinnings examined. The potential of these theories for understanding the future evolution of organizations in international business is assessed. An appendix gives details of the basic models of formal MNE structure identified in the 1960s and 1970s, which are still relevant.

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

“…This leads to the second shortcoming: many of the studies analyse the drivers of a subsidiary's R&D role in isolation and so neglect any network effect. Specifically, they identify three main factors in the configuration of strategic roles: task assignment by headquarters, the subsidiary's own choices and local environmental factors (Birkinshaw & Hood, 1998;Kim et al, 2011;Westney & Zaheer, 2001). However, less importance is attached to any underlying network effects, particularly those arising as a consequence of simultaneous engagement in internal and external networks.…”

Innovation in a global consulting firm: when the problem is too much diversity

“…Knowledge creation has been addressed extensively in research on the multinational enterprise (MNE) as these firms are in a unique position to benefit because the complexity of the environment they operate in provides them with the potential to create new knowledge (e.g., Almeida, Song, and Grant, 2002;Kogut, 1985;Ghoshal and Bartlett, 1988;Prahalad and Doz, 1987). Indeed, one of the main advantages of operating in a global Keywords: innovation; knowledge creation; knowledge sharing; multinational; firm boundaries; social networks context is exposure to the diverse information and practices that comes with operating across different national contexts (Bartlett and Ghoshal, 1989;Westney and Zaheer, 2008). Yet while operating in a global context provides the potential for creating new knowledge and although vital to MNE success; continuous innovation is one of the main concerns and struggles of senior managers in MNEs (Andrew et al, 2008;Barsh, Capozzi, and Davidson, 2008).…”

Introduction: The Debate on Corporate Embeddedness

“…MNCs are therefore confronted with confl icting isomorphic pressures and confl icting demands for legitimacy in their various national contexts (cf. Westney and Zaheer, 2008;Kostova et al, 2008;Meyer et al, 2011). In the globalization-localization framework of Bartlett and Ghoshal (1989) the confl icting aims of global integration and local adaptation give rise to a dilemma of institutionally embedded MNCs: '[T]he greater the degree of social embeddedness of the local subsidiary in a highly integrated business system, the more problematic the implementation of global practices' (Geppert and Williams, 2006: 63).…”