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Organizational dynamics and global integration: A perspective from subsidiary managers

  • Luo, Yadong
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    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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    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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    1. Luo, Yadong, 2000. "Dynamic capabilities in international expansion," Journal of World Business, Elsevier, vol. 35(4), pages 355-378, January.
    2. Y Paul Huo & Donna Randall, 1991. "Exploring subcultural differences in hofstede's value survey: The case of the Chinese," Asia Pacific Journal of Management, Springer, vol. 8(2), pages 159-173, October.
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