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The Organization of Global Service MNEs

Yair Aharoni

Chapter 21 in Standing on the Shoulders of International Business Giants:In Memory of Yair Aharoni, 2024, pp 351-372 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Since the seminal work of Chandler (1962), the notion of a linkage between strategy and structure has become widely accepted — that is, if an organization is to implement its strategy most effectively, it needs the appropriate structure and support systems. At the same time, it needs the flexibility to exploit strategic options that arise from environmental changes. However, at least in the short run, a firm cannot easily change its organizational structure, and this may be a major impediment to its ability to change its strategy. In an increasingly globally integrated world, firms attempting to become major players in their industry need to cope with and exploit environmental changes and adjust their organizational structure to create what Bartlett & Ghoshal (1989) termed “transnational” organizations. In other words, firms need to be able simultaneously to achieve local responsiveness, global efficiency, and the creation of knowledge (learning)…

Keywords: International Business; Internationalization; Strategy; Service Economy; Start-Up High-Technology Companies; High-Technology; Managerial Decision-Making; Business Education; State-Owned Enterprises; Small- and Medium-Sized Enterprises (search for similar items in EconPapers)
JEL-codes: L26 M1 M16 (search for similar items in EconPapers)
Date: 2024
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