CH 13 IMS

integration responsiveness framework

a framework of MNE management on how to simultaneously deal with the pressures for both global integration and local responsiveness

local responsiveness

the necessity to be responsive to different customer preferences around the world

home replication strategy

emphasizes the duplication of home country based competencies in foreign countries

localization multidomestic strategy

focuses on a number of foreign countries/regions, each of which is regarded as a stand alone local market worthy of significant attention and adaptation

global standardization strategy

focuses on development and distribution of standardized products worldwide in order to reap the maximum benefits from low cost advantages

transnational strategy

a strategy that endeavors to be simultaneously cost efficient, locally responseive, and learning driven around the world

center of excellence

an MNE subsidiary explicitly recognized as a source of important capabilities, with the intention that these capabilities can be leveraged by, and/or disseminated to, other subsidiaries

worldwide mandate

a charter to be responsible for one MNE function throughout the world

international division

an organizational structure that is typically set up when firms initially expand abroad, often engaging in a home replication strategy

geographic area structure

an organizational structure that organizes MNE according to different geographic areas

country manager

the manager of a geographic area, either a country or a region

global product division structure

an organizational structure that assigns global responsibilities to each product division

global matrix

an organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures, especially for MNEs adopting a transnational strategy

organizational culture

the collective programming of the mind that distinguishes the members of one organization from another

knowledge management

the structures, processes, and systems that actively develop, leverage, and transfer knowledge

explicit knowledge

knowledge that is codifiable (can be written down and transferred with little loss of richness)

tacit knowledge

knowledge that is noncodifiable, whose acquisition and transfer require hands on practice

open innovation

the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation

global virtual team

team whose members are physically dispersed in multiple locations in the world and often operate on a virtual basis

absorptive capacity

the ability to recognize the value of new information, assimilate it, and apply it

social capital

the informal benefit individuals and organizations derive from their social structures and networks

micro macro link

the micro, informal interpersonal relationships among managers of various units may greatly facilitate macro, intersubsidiary cooperation among these units

subsidiary initiative

the proactive and deliberate pursuit of new opportunities by a subsidiary

global account structure

a customer focused dimension that supplies customers (often other MNEs) in a coordinated and consistent way across various countries

solution based structure

a customer focused solution in which a provider sells whatever combination of goods and services the customers prefer, including rivals’ offerings