Organizational dynamics and global integration a perspective from subsidiary managers

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42 Scopus citations

Abstract

This study establishes a relationship between organizational dynamics and overall integration within MNEs from the perspective of foreign subsidiaries in a dynamic environment. While previous empirical studies have emphasized that overall integration is determined by environmental and industrial pressures, we propose that integration is also affected by strategic capabilities, organizational infrastructures and strategic needs of foreign operations. Analysis of survey data including 168 foreign subsidiaries in a large emerging foreign market suggests that the resource distinctiveness committed to local operations is positively associated with overall integration, while the strength of networking with local businesses and governments is positively associated with overall responsiveness. The effectiveness of established information flow and coordination between a focal subsidiary and the rest of the network has a favorable effect on integration. Moreover, strategic needs in exploitation of factor endowment contribute to higher levels of integration. These needs also moderate the relationship between dynamic capability and overall integration.

Original languageEnglish (US)
Pages (from-to)189-215
Number of pages27
JournalJournal of International Management
Volume8
Issue number2
DOIs
StatePublished - Jul 23 2002

Keywords

  • Global integration
  • National adaptation
  • Organizational characteristics

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Strategy and Management

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