The multinational corporation as a coordinated network: Organizing and managing differently

A multinational corporation (MNC) has a number of unique advantages. Of these, the flexibility to operate as a coordinated multinational network places the strategic emphasis on resources and learning. Coordination and integration are needed to provide coherence in resource commitments. Operating as a coordinated multinational network can provide the flexibility needed to implement global strategies. A network organization results in linkages and interrelationships that require organizing and managing differentially. This article focuses on the organizational and managerial characteristics that are needed to operate as a coordinated multinational network. These characteristics include: a strong central leadership role; the flexibility to respond to opportunities; a differentiated, multidimensional focus; distributed, interdependent capabilities; the managerial capacity to achieve coordination; and a collaborative decision‐making process. This article also discusses the changes needed in structural mechanisms and systems. Explored are the planning process, performance evaluation and control, information technology/management information systems, and human resource management. © 1999 John Wiley & Sons, Inc.