By Niels G. Noorderhaven (auth.), Niels G. Noorderhaven (eds.)
Multinational firms (MNCs) are usually pictured as being on the leading edge of worldwide integration.They face powerful incentives to maximise economies of scale in examine and improvement, purchaising, construction and advertising and marketing, and stumble upon low obstacles within the dissemination of applied sciences and top practices. This distinctive factor brings jointly a number of papers that target assorted features of the strain among worldwide and native inside of MNCs.
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Additional info for Management and International Review: Can Multinationals Bridge the Gap Between Global and Local?
Aeeording to the information-processing theory (Egelhoff 1991, TushmanlNadler 1978), globally inter- mir vol. 43 . Special Issue . 200312 31 Alfredo J. MauriJRakesh B. Sambharya dependent activities call for the creation of coordination mechanisms able to handle the complexity inherent to aglobai strategy. Several studies illustrate the increasing requirements for information processing associated with international integration. Empirical studies of MNE operations indicate the important of balancing information processing requirements with information processing capacities in the form of establishing the appropriate organizational structure (HabibNictor 1991, StopfordIWelis 1972).
Doz, Y. , The Multinational Mission: BalanGing Local Demands and a Global Vision, New York: The Free Press 1987. , Managing International Interdependence: CEO Characteristics in a Resource-Based Framework, Academy of Management Journal, 38, I, 1995, pp. 200-231. /Morrison, A. , An Empirical Analysis of the Integration-Responsiveness Framework in GlobalIndustries, Journal of International Business Studies, 21,4,1990, pp. 541-564. lMorrison, A. , Implementing Global Strategy: Characteristics of Global Subsidiary Mandates, Journal of International Business Studies, 23,4, 1992, pp.
This study has severallimitations. One clear limitation refers to the issue of causality between global integration and performance. The Prais-Wisten regression is a cross-sectional methodology that permits correcting for serial autocorrelation. A more rigorous test would require examining how longitudinal changes in the global integration index affect changes in MNE performance. Another limitation is the selection of sampled firms from only four global industries. It may be interesting to evaluate the generalizability of the non-linear results by selecting firms from other industries in which global integration may have competitive relevance.