Managing the Integration Responsiveness Dilemma

Björn Ambos and Bodo B. Schlegelmilch
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Björn Ambos: Vienna University of Economics and Business Institute for International Marketing and Management
Bodo B. Schlegelmilch: Vienna University of Economics and Business Institute for International Marketing and Management

Chapter 3 in The New Role of Regional Management, 2010, pp 50-64 from Palgrave Macmillan

Abstract: Abstract As outlined in the introduction to this book, one of the most persistent challenges for any firm doing business at an international scale is to manage the latent trade-off between global integration and local adaptation.1 On the one hand, there are pressures to respond to the unique needs of the individual country markets. On the other hand, there are efficiency pressures that encourage companies to de-emphasize local differences and conduct business in a similar way throughout the world. The global integration — local responsiveness trade-off engages the firm at multiple levels, involving its overall strategy, the architectural configuration of the firm as well as the operational aspects of the firm, for example, the adaptation of individual prices or advertising campaigns to a given market. In this section, we will first summarize the key drivers of local adaptation and global integration. Based on this understanding, we will discuss common approaches to deal with this global — local trade-off. Building on our own data and recent evidence by an increasing number of scholars,2 we conclude that, for most firms, the integration — responsiveness dilemma is probably best solved on a regional basis.

Keywords: Local Adaptation; Regional Strategy; Regional Management; Global Integration; Home Region (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27387-0_3

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DOI: 10.1057/9780230273870_3

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