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The multinational corporation as a coordinated network: Organizing and managing differently
Author(s) -
Ensign Prescott C.
Publication year - 1999
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.4270410307
Subject(s) - multinational corporation , flexibility (engineering) , interdependence , business , process management , knowledge management , process (computing) , corporation , resource (disambiguation) , industrial organization , computer science , management , economics , sociology , computer network , finance , operating system , social science
Abstract 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.