From M-form to N-form: The Structure of Multinational Corporations

The purpose of this study is to map, illuminate and explain the recent development of the strategies, structure and control of multinational corporations. The aim is to identify crucial problems in managing and organizing multinational corporations and describe what sort of approaches are used and proposed to solve these problems. This is a literature study where an inventory and critical examination of the recent research on the strategies, structure and control of multinational corporations. The emphasis in the study is on research carried out in the last ten years. It starts out with a summary of the early research on multinational corporations, proceeds to an analysis of the process school, and ends up with a discussion about organizing international operations from a network perspective.MNC; multinational structure; international; strategy; transnational; subsidiary; global

A study of subsidiaries views of information systems strategic planning in multinational organisations

This research examines information systems strategic planning (ISSP) in multinationals from the perspective of the subsidiaries. The research was carried out through interviews with the IT and business managers in subsidiaries of nine large American, European, and Japanese multinationals. The evidence from this study reveals that, in the majority of these organisations, IS planning is either centralised or moving towards centralisation. The main focus of IS planning, in many of these organisations, is to control cost and achieve scale economies. As centralisation increases IT tends to control the planning process and, as a result, IS planning becomes more tactical than strategic and is dominated by IT infrastructure planning. Project implementation was the main criterion used to measure IS planning success. However, due to the dominant role of IT, the subsidiary business managers are often less satisfied with the IS planning approach compared with the subsidiary IT managers. The level of involvement of business managers and their satisfaction with ISSP was related to the degree of decentralisation of responsibility for IS planning

Innovation Initiatives in Large Software Companies: A Systematic Mapping Study

To keep the competitive advantage and adapt to changes in the market and technology, companies need to innovate in an organised, purposeful and systematic manner. However, due to their size and complexity, large companies tend to focus on maintaining their business, which can potentially lower their agility to innovate. This study aims to provide an overview of the current research on innovation initiatives and to identify the challenges of implementing the initiatives in the context of large software companies. The investigation was performed using a systematic mapping approach of published literature on corporate innovation and entrepreneurship. Then it was complemented with interviews with four experts with rich industry experience. Our study results suggest that, there is a lack of high quality empirical studies on innovation initiative in the context of large software companies. A total of 7 studies are conducted in such context, which reported 5 types of initiatives: intrapreneurship, bootlegging, internal venture, spin-off and crowdsourcing. Our study offers three contributions. First, this paper represents the map of existing literature on innovation initiatives inside large companies. The second contribution is to provide an innovation initiative tree. The third contribution is to identify key challenges faced by each initiative in large software companies. At the strategic and tactical levels, there is no difference between large software companies and other companies. At the operational level, large software companies are highly influenced by the advancement of Internet technology. Large software companies use open innovation paradigm as part of their innovation initiatives. We envision a future work is to further empirically evaluate the innovation initiative tree in large software companies, which involves more practitioners from different companies

Subsidiaries within a High-Tech MNC. A reappraisal of the Role of Functions

The recent management literature on multinational corporations (MNCs) has mainly focused on the new role played by subsidiaries within the international firms. Many scholars have underlined that MNCs tend to organise themselves along a differentiated network approach, where subsidiaries play a very different role according to their internal resources and the significance of the local environment. This strategic and organisational model dates back to the pioneering work of Bartlett and Goshal, who called this new international strategy “Transnational” so as to differentiate it from the classical Multidomestic and Global strategies. Along with the different roles played by the subsidiaries, this model is characterised by the simultaneous existence of cooperation and competition within the multinational corporations. The present work focuses on the role of the Italian subsidiary of AgilentTechnologies, a multinational firm with around 36,000 employees that is active in more than 40 countries in high-tech sectors such as electronics, telecommunications and life science. The case study brought new light to the usual distinction that is commonly made with regard to the role of a subsidiary. When we try to apply the Transnational model to Agilent we realise that neither this model nor the traditional typologies (Multidomestic, Global) apply to the case we have studied. The role of the subsidiary changes significantly according to the function being considered. Therefore, we conclude that the role of function should be re-evaluated when the strategy and the structure of an MNC is defined. Not only does the classification of subsidiaries change according to the function in question, but the strategic posture and the organisational structure of MNCs should also be re-evaluated in light of the function under consideration. Our study shows how activities such as R&D, where coopetition represents a strategic source of advantage, seem to follow the Transnational scheme, while others such as sales are mainly globally managed

Scaling Up Inclusive Business -- Solutions to Overcome Internal Barriers

Sustainability challenges including poverty, social unrest, climate change and environmental degradation have become ever more urgent. Business has the technology, innovation capacity, resources, and skills to play a key role in providing the radical solutions the world desperately needs.The objective of this brief is to kick off greater dialogue on the internal barriers companies face along the pathway to scale in inclusive business and how to overcome them. Building on the hands-on experience of businesses active in this space and the valuable insights of experts, the following pages identify some of the most common internal barriers and the solutions that leading companies are using to tackle them. We gained new insights by looking at the work of thirteen companies: CEMEX, Grundfos, Grupo Corona, ITC Ltd., Lafarge, Masisa, Nestlé, Novartis, Novozymes, SABMiller, Schneider Electric, The Coca-Cola Company, and Vodafone. We also interviewed two leading academics doing research in this area, Cornell University's Erik Simanis (United States) and Universidad de los Andes' Ezequiel Reficco (Colombia)

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

Sharing knowledge across borders has proven to be especially relevant to multinational corporations (MNCs). Foreign subsidiaries have become active players in these knowledge flows. However, the network effects of interacting with multiple agents on the evolution of the R&D role played by subsidiaries are still undeveloped. The present study focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R&D role might evolve, especially, as a consequence of their interaction with a variety of knowledge networks. We examine this issue by conducting four longitudinal case studies of subsidiaries operating in Spain. Using an inductive approach to theory building, we develop a general theoretical framework considering the subsidiary's embeddedness in the knowledge networks within the MNC (internal) and within the host country (external). We find that evolving towards a competence-creating mandate is characterised by the simultaneous growth of embeddedness in both internal and external networks; otherwise, a subsidiary may gravitate away from upgrading its R&D role. Thus, the contribution of this paper is to present a dynamic model that sheds light on how internal and external knowledge embeddedness interact in generating outcomes for subsidiary R&D roles

New Product Development (Npd) Process In Subsidiary: Information Perspectives

Information is an important resource for new product development (NPD) process in subsidiary. However, we still lack of research to analyze NPD process from information perspective in subsidiary context. This research is an exploratory research and it exploited 8 cases of NPD process in consumer goods subsidiaries operating in Indonesian market. Three types of information have been identified and analyzed NPD process; global, regional and local information. The result of this research reveals that new product will be resulted is determined by the type of information used. This research reveals four new product typology using information types. The semi-structured interview and archive studies generate global, regional, integrated and local NPD process. Each process has its own characteristics such as type of information used and interaction pattern among subsidiary-regional office-headquarte

Micro-political aspects of mandate development and learning in local subsidiaries of multinational corporations

Beyond functional-structuralist approaches this paper sheds some light on micro political aspects of mandate development and learning processes in multinational corporations (MNC). As classical micro-political studies have shown, management behaviour and learning are not only constrained or enabled by certain structural and (national) cultural patterns, but have its own political agendas and are shaped by individual interests which leads to game playing, active or passive resistance and (re)negotiation of the 'rules of the game'. Based on the assumption that actors are neither the organs of given structures nor acting fully autonomous, the paper focuses on how subsidiary managers interpret and integrate individual, organisational as well as home and host country institutional factors into certain strategies of action. By discussing critical events in mini case studies on mandate development and learning in German subsidiaries in France we will highlight the interactive dynamics between key-actors micro-political strategies and particular institutional settings. Here we, firstly, discuss institutionalist approaches and investigate how different forms of home and host country embeddedness do influence the development of distinct managerial competences and decision making strategies at the subsidiary level. The paper refers then to the question how the overall strategy and multinational organisational design and policies relate to individual interests of key subsidiary actors. These can to higher or lower degrees be influenced by e.g. differences in nationalities, professional backgrounds as well as career stages, orientations and aspirations. By integrating these diverse relational layers, the paper will provide a more dynamic actor centred approach stressing both, the micro-political aspects and interactive construction of intra and intersubsidiary power relations, a key variable to explain mandate development and learning processes in MNCs. -- Über funktional-strukturalistische Ansätze hinausgehend, beschäftigt sich dieser Beitrag mit den mikropolitischen Aspekten von Mandatsentwicklungsprozessen in multinationalen Unternehmen. Im Zentrum der Betrachtung stehen die Strategien und Handlungsrationalitäten von Tochtergesellschaftsmanagern im Ausland. Anhand von drei Fallbeispielen zeigt der Beitrag wie Manager deutscher Auslandsgesellschaften in Frankreich individuelle, organisationale und institutionelle Faktoren (Heimat- und Gastlandeffekte) interpretieren und zu einer Handlungsstrategie verbinden. Ausgangspunkt ist dabei zunächst eine Diskussion relevanter Ansätze des Internationalen Managements und der international vergleichenden Organisationsforschung. Diese Ansätze werden um einen mikropolitischen Ansatz erweitert, der auf die spezifische Bedeutung von Nationalzugehörigkeit, professionellem Background und individueller Karriereorientierung bei Tochtergesellschaftsmanagern im Ausland abstellt.