Premium
Globalization and organizational restructuring: A strategic perspective
Author(s) -
Jones Marc T.
Publication year - 2002
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.10024
Subject(s) - restructuring , globalization , business , industrial organization , competitive advantage , multinational corporation , corporate governance , revenue , economic system , strategic management , stakeholder , market economy , economics , marketing , finance , management
The new market opportunities, competitive threats, and diffusion of business models associated with globalizationhave been key drivers of organizational restructuring over the past decade. Companies have responded to thesedevelopments in a variety of ways with the objective of improving their cost and/or revenue structures throughreorganizing their vertical, horizontal, and spatial boundaries and governance mechanisms. Major forms ofrestructuring at the business level have included labor intensification, investment in new technologies, downsizingand reengineering, the formation of strategic alliances and networks, spatial reconfiguration, and a shift frominternational and multinational to global and transnational strategies. To be most effective, any type ofrestructuring must be clearly and explicitly aligned with a firm's business‐level strategy in order tomaximize the efficient and effective allocation of resources in pursuit of competitive advantage. A strategic use ofrestructuring which links such efforts to broader competitive strategy, and where possible to a“high‐road” approach to overall competitiveness, should result in more sustainable benefits whichgenerate increased value‐added to shareholders as well as greater well being in the broader stakeholdercommunity. © 2002 Wiley Periodicals, Inc.