Chapter 6b: Terms 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.
Global integration
A strategy of focusing benefits of aggregating operations above the national level.
Local responsiveness
A strategy that focuses on accommodation of local consumer demand and institutions.
Home replication strategy
A strategy that emphasizes international replication of home country-based competences such as production scales, distribution efficiencies and brand power.
Localization (multi domestic) strategy
A strategy that focuses on a number of foreign countries/regions, each of which is regarded as a stand-alone ‘local’ (domestic) market worthy of significant attention and adaptation.
Four strategic choices for multinational enterprises
- Home replication
- Localisation
- Global standards
- Transnational
Global standards strategy
A strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages.
Centre of excellence
An 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.
Global key accounts
Customers who themselves operate at multiple sites where they expect delivery.
Transnational strategy
A strategy that endeavours to be cost-efficient, locally responsive and learning-driven simultaneously around the world.
Corporate headquarters
An MNE’s central unit that hosts corporate executives as well as central staff functions.
International division
A structure bundling all international activities in one unit, often associated with a home replication strategy
Geographic area structure
An organizational structure that organizes the MNE according to different countries and regions.
Regional HQ
Unit coordinating business activities in a geographic area.
Regional manager
The business leader of a specific geographic area.
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, especially for MNEs adopting a transnational strategy.
Knowledge management
The structures, processes and systems that actively develop, leverage and transfer knowledge.
Explicit knowledge
Knowledge that is codifiable (that is, can be written down and transferred with little loss of its richness).
Tacit knowledge
Knowledge that is non-codifiable, and its acquisition and transfer require hands-on practice.
Organisational (team embedded) knowledge
Knowledge held in an organization that goes beyond the knowledge of the individual members.
Reverse knowledge transfer
Knowledge created in a subsidiary being transferred from the subsidiary to a parent organization.
Community of practice (CoP)
Group of people doing similar or related work and sharing knowledge about their practices of work.
Virtual community of practice
Community of practice interacting via the internet
