Strategy for Embracing the Conflicting Themes of Local Adaptation and Global Integration

Toshiro Wakayama (), Junjiro Shintaku (), Tomofumi Amano () and Takafumi Kikuchi
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Toshiro Wakayama: International University of Japan, http://www.iuj.ac.jp/
Junjiro Shintaku: University of Tokyo, http://www.e.u-tokyo.ac.jp/
Tomofumi Amano: University of Tokyo, http://www.e.u-tokyo.ac.jp/
Takafumi Kikuchi: Panasonic Corporation

No EMS_2011_23, Working Papers from Research Institute, International University of Japan

Abstract: We present a new conceptual framework for managing conflicting strategic themes of localadaptation and global integration. The two themes conflict because local adaptation tends to value independence of local operations while global integration strives for concerted efforts for scale and scope economies. The conflicting nature of the two themes gets drastically intensified when developed economy MNCs enter emerging markets due to the vast difference between developed and emerging economies. The new conceptual framework proposed in this paper is based on Giddens' structuration theory and constructs a co-evolutionary perspective for managing the two themes. We illustrate the framework through the case Panasonic Home Appliances in China.

Pages: 20 pages
Date: 2011-11
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https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2011_23.pdf First version, 2011 (application/pdf)

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