The multinational enterprise as a loosely coupled system: the global integration - local responsiveness dilemma

Article Abstract:

Keywords: Multinationals, Organizational theory, Flexibility, Integration A major challenge for international business (IB) theorists is to understand how multinational enterprises resolve the tension between their need to integrate globally - in the pursuit of economies of scale - with their equal need to respond to the local conditions of each market. This question has shaped IB theorizing for some years and, even though IB is largely founded on economic ideas, has driven it to seek significant help from organization theory. Following in this tradition, we argue that Weick's notion of loose coupling can provide additional insights. We explore the parallels between Weick's seven principles of loose coupling and Doz and Prahalad's seven criteria for estimating OT's usefulness to IB theorists. We make some suggestions about how to operationalize loose coupling theory and conclude that the conceptual shift involved could prove a powerful step forward for IB researchers.

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Performance measurement, budgeting and strategic implementation in the multinational enterprise

Article Abstract:

Keywords: Globalization, Budgeting, Performance measurement, Multinationals In recent years, value creation in the global economy has stemmed from firms' ability to manage and leverage human and information resources. The shift away from investment in physical capital presents managers with new strategy implementation and performance evaluation challenges. While traditional financial metrics reflect the use of physical capital, the keys to long term competitive advantage in the knowledge and information economy are based on the successful strategic management of intangible resources.

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The multinational enterprise as a loosely coupled system: the global integration - local responsiveness dilemma

Article Abstract:

A study was conducted to analyze the notion of the international business company as an open system or loosely coupled enterprise with a set of practices that are heterogeneous but institutionalized. A loosely coupled, trans-national model of multinational enterprise provides a promising theoretical and practical option to existing unidimensional models. It can help researchers further understand the international-regional debate, and contributes to and clarifies the process approach to organizational analysis.

Organizational Methods NEC, Multinational Corporations, Analysis, Case studies, International business enterprises, Organizational change, Organizational research, Organization

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