Introduction to IB chapter 15

Question 1

global (aggregation) strategies

Answer 1

Strategies that focus on integrating synergies between world-wide operations at different locations

Question 2

Local responsiveness (adaptation) strategy

Answer 2

Strategies that aim at the delivery of customized, tailored products to each market, and serve consumers on their local terms.

Question 3

Integration-responsiveness framework

Answer 3

A framework of MNE management on how to simultaneously deal with global integration and local responsiveness

Question 4

Home replication strategy

Answer 4

A strategy that believes that the replication of home country-based competencies of a company is the best way to transfer competencies of the firm abroad

Question 5

Localization (multidomestic) strategy

Answer 5

A strategy that is focused on multiple different countries or region, everyone of which is regarded as a separate (stand-alone) local market. Typically used when clear differences between the countries/regions can be seen

Question 6

Global standards strategy

Answer 6

strategy that focuses on the key advantages of the MNE over local firms within a market (e.g. scale, arbitrage, knowledge, integration, global clients, risk diversification)

Question 7

Transnational strategy

Answer 7

A strategy that aims to be simultaneously cost-efficient, locally responsive and learning-driven around the world (free flow of knowledge between subsidiaries and headquarters)

Question 8

Corporate headquarters (HQ)

Answer 8

MNE’s central unit that hosts corporate executives as well as central staff functions

Question 9

International division

Answer 9

A division within a company that aims to take care of all international activities of a company

Question 10

Geographic structure

Answer 10

An organizational structure that organizes MNE according to different countries and regions

Question 11

Regional headquarters

Answer 11

An organizational unit coordinating and supporting activities within a given region

Question 12

Global product division

Answer 12

An organizational structure that assigns global responsibilities to each product division (e.g. military products, railways, cars, civilian aircrafts)

Question 13

Global matrix structure

Answer 13

An organizational structure with two set lines of authority, typically a regional line and a product line

Question 14

Worldwide (global) mandate

Answer 14

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

Question 15

Subsidiary initiatives

Answer 15

Subsidiaries with the autonomy to design their own subsidiary-level strategies and agendas, to increase its degree of responsibility

Question 16

Knowledge management

Answer 16

structures, processes and systems that actively develop, leverage and disseminate knowledge

Question 17

Explicit knowledge

Answer 17

knowledge that can be written down and transferred with little loss of its richness. All knowledge used by IT is explicit

Question 18

Tacit knowledge

Answer 18

knowledge that cannot be written down, it can only be acquired through learning by doing (practice)

Question 18

Organizational (team-embedded) knowledge

Answer 18

Knowledge held in an organization that goes beyond the knowledge of the individual members

Question 19

Boundary spanners

Answer 19

Individuals with strong networks across business units and frequently communicate with their network

Question 19

Reverse knowledge transfer

Answer 19

knowledge created in a subsidiary and then transferred to a parent organization

Question 20

Community of practice (CoP)

Answer 20

A group of people doing similar or related tasks and sharing knowledge about their practices of work

Question 20

Knowledge governance

Answer 20

The structures and mechanisms MNEs use to facilitate the creation integration, dissemination and utilization of knowledge

Question 21

Virtual communities of practice

Answer 21

CoP only working via internet

Question 22

Absorptive capacity

Answer 22

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

Question 23

Social capital

Answer 23

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

Question 24

Business unit headquarters

Answer 24

central coordinating unit for an entire business

Question 25

National innovation system

Answer 25

Institutions and organizations that influence innovation activity in a country