In order to compete in an increasingly complex international environment, companies need to achieve simultaneously with global operations global coordination and flexibility at the national level. Traditional forms of organization, however, tend to provide one or the other attribute. The authors illustrate this point by the experience of the two major competitors in the consumer electronics: Philips, a classic “multinational” companies whose decentralized organization structure is well suited to facilitating na … Read more »

In order to compete in an increasingly complex international environment, companies need to achieve simultaneously with global operations global coordination and flexibility at the national level. Traditional forms of organization, however, tend to provide one or the other attribute. The authors illustrate this point by the experience of the two major competitors in the consumer electronics: Philips, a classic “multinational” companies whose decentralized structure association is well suited to the facilitation of national flexibility and Matsushita, a “global” company with a central Hub Configuration which it makes with great efficiency. The authors then describe an aspiring model – the “transnational” organization whose structure is based on an integrated network of worldwide operations is based. The transnational company requires both effective corporate governance that does not hinder national flexibility and efficient land management that does not prevent that global coordination.
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Christopher A. Bartlett,
Sumantra Ghoshal
Source: California Management Review
21 pages.
Release Date: 1 October 1988. Prod #: CMR019-PDF-ENG
Organizing for Worldwide Effectiveness: The Transnational Solution HBR case solution

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