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Organizational dynamics and global integration: A perspective from subsidiary managers

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  • Luo, Yadong
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    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 8 (2002)
    Issue (Month): 2 ()
    Pages: 189-215

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    Handle: RePEc:eee:intman:v:8:y:2002:i:2:p:189-215

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    Related research

    Keywords: Global integration Organizational characteristics National adaptation;

    References

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    Cited by:
    1. Fan, Di & Zhu, Cherrie Jiuhua & Nyland, Chris, 2012. "Factors affecting global integration of Chinese multinationals in Australia: A qualitative analysis," International Business Review, Elsevier, vol. 21(1), pages 13-26.
    2. Julius H. Johnson, Jr. & Dinesh A. Mirchandani & Seng-Su Tsang, 2008. "Competitive Dynamics, Global Industry Cycles, Integration-Responsiveness, and Financial Performance in Emerging and Industrialized Country Markets," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 7(1), pages 61-88, April.
    3. Brock, David M. & Yaffe, Tal & Dembovsky, Mark, 2006. "International diversification and performance: A study of global law firms," Journal of International Management, Elsevier, vol. 12(4), pages 473-489, December.

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