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Organizational dynamics and global integration: A perspective from subsidiary managers

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  • Luo, Yadong

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.

Suggested Citation

  • Luo, Yadong, 2002. "Organizational dynamics and global integration: A perspective from subsidiary managers," Journal of International Management, Elsevier, vol. 8(2), pages 189-215.
  • Handle: RePEc:eee:intman:v:8:y:2002:i:2:p:189-215
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    Cited by:

    1. 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.
    2. Fan, Di & Cui, Lin & Li, Yi & Zhu, Cherrie J., 2016. "Localized learning by emerging multinational enterprises in developed host countries: A fuzzy-set analysis of Chinese foreign direct investment in Australia," International Business Review, Elsevier, vol. 25(1), pages 187-203.
    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.
    4. repec:eee:proeco:v:193:y:2017:i:c:p:281-293 is not listed on IDEAS
    5. 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.
    6. Celo, Sokol & Nebus, James & Kim Wang, I., 2015. "MNC structure, complexity, and performance: Insights from NK methodology," Journal of International Management, Elsevier, vol. 21(3), pages 182-199.
    7. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0230-7 is not listed on IDEAS
    8. repec:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0072-5 is not listed on IDEAS
    9. Breunig, Karl Joachim & Kvålshaugen, Ragnhild & Hydle, Katja Maria, 2014. "Knowing your boundaries: Integration opportunities in international professional service firms," Journal of World Business, Elsevier, vol. 49(4), pages 502-511.
    10. repec:eee:worbus:v:52:y:2017:i:6:p:842-853 is not listed on IDEAS

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