Multinational Corporate Strategy-making: Integrating International Business and Strategic Management

Torben Juul Andersen, Ulf Andersson

    Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

    Abstract

    This chapter contends that the international business (IB) and strategic management (SM) fields have many commonalities that should be considered in a turbulent globalized business context. IB studies refer to the need for local integration and local adaptation whereas empirics in SM pinpoint the complementary effects of central planning and decentralized decision-making. We present and synthesize these rather field specific perspectives and try to synthesize insights from both fields in an adaptive strategy-making model including the effects of autonomous subsidiary initiatives and intended mandates from corporate headquarters. The model considers local subsidiary actions of both operational and strategic nature and we argue that it may be futile to distinguish between these effects as incremental operational responses can cumulate into more substantial changes over time with dimensions of strategic adaptation. The model provides a foundation for further considerations about how to combine central intent and direction with decentralization and autonomous initiatives in the multinational corporation.
    Original languageEnglish
    Title of host publicationThe Responsive Global Organization : New Insights from Global Strategy and International Business
    EditorsTorben Juul Andersen
    Place of PublicationBingley
    PublisherEmerald Group Publishing
    Publication date2017
    Pages13-34
    Chapter1
    ISBN (Print)9781787148321
    ISBN (Electronic)9781787148314, 9781787432673
    DOIs
    Publication statusPublished - 2017
    Series Emerald Studies in Global Strategic Responsiveness
    Volume1

    Keywords

    • Central coordination
    • Decentralized decision-making,
    • Global integration
    • Interactive strategy-making
    • Local adaptation
    • Subsidiary autonomy

    Cite this

    Andersen, T. J., & Andersson, U. (2017). Multinational Corporate Strategy-making: Integrating International Business and Strategic Management. In T. J. Andersen (Ed.), The Responsive Global Organization: New Insights from Global Strategy and International Business (pp. 13-34). Emerald Group Publishing. Emerald Studies in Global Strategic Responsiveness , Vol.. 1 https://doi.org/10.1108/978-1-78714-831-420171001