Chapter 10

Question 1

integration-responsiveness framework

Answer 1

a framework of MNe management on how to simultaneously deal with two sets of pressures for global integration and local responsiveness

Question 2

local responsiveness

Answer 2

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

Question 3

home replication strategy

Answer 3

a strategy that emphasizes the international replication of home country–based competencies such as production scales, distribution efficiencies, and brand power

Question 4

localization (multi-domestic) strategy

Answer 4

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

Question 5

global standardization strategy

Answer 5

an MNe strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages

Question 6

center of excellence

Answer 6

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

Question 7

worldwide (global) mandate

Answer 7

the charter to be responsible for one MNe function throughout the world

Question 8

transnational strategy

Answer 8

an MNE strategy that endeavors to be cost-efficient, locally responsive, and learning-driven simultaneously

Question 9

International division

Answer 9

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

Question 10

geographic area structure

Answer 10

an organizational structure that organizes the MNE according to different countries and regions

Question 11

country (regional) manager

Answer 11

the business leader in charge of a specific country (or region) for an MNE

Question 12

global product division

Answer 12

an organizational structure that assigns global responsibilities to each product division

Question 13

global matrix

Answer 13

an organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures

Question 14

organizational culture

Answer 14

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

Question 15

knowledge management

Answer 15

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

Question 16

explicit knowledge

Answer 16

Knowledge that is codifiable (can be written down and transferred without losing much of its richness)

Question 17

tacit knowledge

Answer 17

Knowledge that is not codifiable (that is, hard
to be written down and transmitted without losing much of its richness)

Question 18

open innovation

Answer 18

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

Question 19

global virtual team

Answer 19

team whose members are physically dispersed in multiple locations in the world. they cooperate
on a virtual basis

Question 20

absorptive capacity

Answer 20

the ability to absorb new knowledge by recognizing the value of new information, assimilating it, and applying it

Question 21

social capital

Answer 21

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

Question 22

micro-macro link

Answer 22

the link between micro, informal interpersonal relationships among managers of various
units and macro, inter-organizational cooperation among various units

Question 23

subsidiary initiative

Answer 23

the proactive and deliberate pursuit of new business opportunities by an MNE’s subsidiary to expand its scope of responsibility

Question 24

global account structure

Answer 24

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

Question 25

solutions-based structure

Answer 25

an MNE organizational structure that caters to the needs of providing solutions for customers’ problems

Question 26

Chapter 10 title

Answer 26

Strategizing, Structuring, and Innovating Around the World