Organizational transformation—from multinational to global: An early dynamic modeling perspective
✍ Scribed by Adam Groothuis; Yusaf H. Akbar
- Publisher
- Wiley (John Wiley & Sons)
- Year
- 2007
- Tongue
- English
- Weight
- 326 KB
- Volume
- 26
- Category
- Article
- ISSN
- 1932-2054
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✦ Synopsis
Abstract
This paper examines the evolution of an organization strategy aimed at creating a global company. The paper offers a conceptual and experimental framework for this process. The article defines the adoption of a globalization strategy in terms of economic, “political” and “social” phases that are trig‐gered temporally and spatially by agents and/or structural events. The process of transformation itself is a strategy and the adoption of a globalization strategy is dependent on the scope of the agent respective to its trigger. The evolution of a globalization strategy appears to be initiated by a need to liberalize rules and regulations both within an organization but also within a country that will lead to eventual economic benefits. The adoption of a globalization strategy provides further economic benefit, but requires increased liberalization and the creation of what this paper terms a “hybrid organization.” Moreover, the commitment to integrate a globalization strategy involves a “social” component that requires acceptance of new organizational frameworks and is achieved through “normative diffusion.” Based on experimental data, this paper will highlight seminal literature to define a framework for the evolution of a globalization strategy and create a dynamic model to define a relative timeframe for an MNE to evolve a globalization strategy. Managerial implications are offered based on our analysis. © 2007 Wiley Periodicals, Inc.