The global integration of business functions: a study of multinational businesses in integrated global industries

K Kim, Park J-H and J E Prescott
Additional contact information
K Kim: College of Business, Konkuk University, Seoul, Korea
Park J-H: College of Business, Ewha Womans University, Seoul, Korea
J E Prescott: Katz Graduate School of Business, University of Pittsburgh, USA

Journal of International Business Studies, 2003, vol. 34, issue 4, 327-344

Abstract: The way that multinational businesses in integrated global industries coordinate and control R&D, manufacturing, and marketing functions across borders has significant implications for performance. We propose that, in such global industries, certain integrating modes will be more effective than others in integrating a function globally. We show that each function has a different combination of effective integrating modes. For global R&D integration, people-based and information-based modes are more effective than formalization-based and centralization-based modes. For manufacturing, people, information, and formalization are more effective than centralization. With respect to marketing, information and centralization are more effective than people and formalization. We also demonstrate that the co-alignment between actual and ideal profiles (configurations or patterns) of integrating modes results in superior performance. Our results reveal that people-based and information-based modes are generally more effective than formalization-based and centralization-based modes in coordinating and controlling business functions worldwide. Journal of International Business Studies (2003) 34, 327–344. doi:10.1057/palgrave.jibs.8400035

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v34/n4/pdf/8400035a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v34/n4/full/8400035a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:34:y:2003:i:4:p:327-344

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().