Chapter 10 Flashcards
integration-responsiveness framework
a framework of MNe management on how to simultaneously deal with two sets of pressures for global integration and local responsiveness
local responsiveness
the necessity to be responsive to different customer preferences around the world
home replication strategy
a strategy that emphasizes the international replication of home country–based competencies such as production scales, distribution efficiencies, and brand power
localization (multi-domestic) strategy
an MNe strategy that focuses on a number of foreign countries/regions, each of which is regarded as a standalone local (domestic) market worthy of significant attention and adaptation
global standardization strategy
an MNe strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages
center of excellence
MNE subsidiary explicitly recognized as a source of important capabilities, with the intention that these capabilities be leveraged by and/or disseminated to other subsidiaries
worldwide (global) mandate
the charter to be responsible for one MNe function throughout the world
transnational strategy
an MNE strategy that endeavors to be cost-efficient, locally responsive, and learning-driven simultaneously
International division
an organizational structure typically set up when firms initially expand abroad, often engaging in a home replication strategy
geographic area structure
an organizational structure that organizes the MNE according to different countries and regions
country (regional) manager
the business leader in charge of a specific country (or region) for an MNE
global product division
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
organizational culture
the collective programming of the mind that distinguishes 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 without losing much of its richness)
tacit knowledge
Knowledge that is not codifiable (that is, hard
to be written down and transmitted without losing much of its richness)
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. they cooperate
on a virtual basis
absorptive capacity
the ability to absorb new knowledge by recognizing the value of new information, assimilating it, and applying it
social capital
the informal benefits individuals and organizations derive from their social structures and networks
micro-macro link
the link between micro, informal interpersonal relationships among managers of various
units and macro, inter-organizational cooperation among various units
subsidiary initiative
the proactive and deliberate pursuit of new business opportunities by an MNE’s subsidiary to expand its scope of responsibility
global account structure
a customer-focused structure that supplies customers (often other MNEs) in a coordinated and consistent way across various countries
solutions-based structure
an MNE organizational structure that caters to the needs of providing solutions for customers’ problems
Chapter 10 title
Strategizing, Structuring, and Innovating Around the World