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Global Account Management in Multinational Corporations: Theory and Evidence

Author

Listed:
  • Julian Birkinshaw

    (London Business School)

  • Omar Toulan

    (McGill University)

  • David Arnold

    (Harvard Business School)

Abstract

This paper uses two theoretical perspectives, information processing and resource dependency, to examine global account management (the co-ordination of activities involved in serving a single customer in multiple countries). It is hypothesized that global account management structures allow the multinational corporation (MNC) to increase its information processing capacity as well as its bargaining power vis-á-vis the global customer. Using data on 106 global accounts in 16 MNCs, we find support for both perspectives individually. Furthermore, evidence is presented for an interaction effect in which the effectiveness of structures for increasing information processing is conditional upon the presence of high customer dependence.© 2001 JIBS. Journal of International Business Studies (2001) 32, 231–248

Suggested Citation

  • Julian Birkinshaw & Omar Toulan & David Arnold, 2001. "Global Account Management in Multinational Corporations: Theory and Evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(2), pages 231-248, June.
    • Handle: RePEc:pal:jintbs:v:32:y:2001:i:2:p:231-248
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    Citations

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    Cited by:

    1. Leila Hurmerinta-Peltomäki & Niina Nummela, 2006. "Mixed methods in international business research: A value-added perspective," Management International Review, Springer, vol. 46(4), pages 439-459, August.
    2. Krane, Ronja & Eulerich, Marc, 2020. "Going global: Factors influencing the internationalization of the internal audit function," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    3. Michal Pohludka & Hana Štverková, 2019. "The Best Practice of CRM Implementation for Small- and Medium-Sized Enterprises," Administrative Sciences, MDPI, vol. 9(1), pages 1-17, March.
    4. Klopf, Patricia & Nell, Phillip C., 2018. "How “space” and “place” influence subsidiary host country political embeddedness," International Business Review, Elsevier, vol. 27(1), pages 186-197.
    5. Rouziès, Dominique & Onyemah, Vincent & Panagopoulos, Nikolaos, 2008. "How HRM control affects boundary-spanning employees’ behavioural strategies and satisfaction : The moderating impact of cultural performance orientation," HEC Research Papers Series 895, HEC Paris.
    6. Lacoste, Sylvie & Zidani, Kenza & Cuevas, Javier Marcos, 2022. "Lateral collaboration and boundary-spanning from a global leadership perspective: The case of global account managers," Journal of World Business, Elsevier, vol. 57(3).
    7. Dzikowska Marlena & Gorynia Marian, 2020. "Long-term evolution of the subsidiary’s role: a qualitative perspective on a subsidiary located in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(1), pages 79-95, March.
    8. Kumar, Ajith & Steward, Michelle D. & Morgan, Felicia N., 2018. "Delivering a superior customer experience in solutions delivery processes: Seven factors for success," Business Horizons, Elsevier, vol. 61(5), pages 775-782.
    9. Segal-Horn, Susan & Dean, Alison, 2009. "Delivering 'effortless experience' across borders: Managing internal consistency in professional service firms," Journal of World Business, Elsevier, vol. 44(1), pages 41-50, January.
    10. Hui Shi, Linda & Zou, Shaoming & Cavusgil, S. Tamer, 2004. "A conceptual framework of global account management capabilities and firm performance," International Business Review, Elsevier, vol. 13(5), pages 539-553, October.
    11. Fang Wu & Linda H. Shi, 2011. "Dealing with Market Dynamism," Management International Review, Springer, vol. 51(5), pages 635-663, October.
    12. Detmar Straub & Peter Weill & Kathy S. Schwaig, 2008. "Strategic dependence on the IT resource and outsourcing: A test of the strategic control model," Information Systems Frontiers, Springer, vol. 10(2), pages 195-210, April.
    13. Tihanyi, Laszlo & Thomas, Wayne B., 2005. "Information-processing demands and the multinational enterprise: a comparison of foreign and domestic earnings estimates," Journal of Business Research, Elsevier, vol. 58(3), pages 285-292, March.
    14. Birkinshaw, Julian & Braunerhjelm, Pontus & Holm, Ulf & Terjesen, Siri, 2006. "Why Do Some Multinational Corporations Relocate Their Headquarters Overseas?," Working Paper Series in Economics and Institutions of Innovation 54, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    15. Matolcsy, Zoltan & Wakefield, James, 2017. "Multinational headquarter control of wholly owned foreign subsidiaries," The British Accounting Review, Elsevier, vol. 49(3), pages 275-293.
    16. Boojihawon, Dev Kumar & Dimitratos, Pavlos & Young, Stephen, 2007. "Characteristics and influences of multinational subsidiary entrepreneurial culture: The case of the advertising sector," International Business Review, Elsevier, vol. 16(5), pages 549-572, October.
    17. Nell, Phillip C. & Ambos, Bjérn & Schlegelmilch, Bodo B., 2011. "The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks," Journal of World Business, Elsevier, vol. 46(4), pages 497-505, October.
    18. Daekwan Kim & Ruey-Jer Bryan Jean & Rudolf R. Sinkovics, 2018. "Drivers of Virtual Interfirm Integration and Its Impact on Performance in International Customer–Supplier Relationships," Management International Review, Springer, vol. 58(3), pages 495-522, June.
    19. Li, Peng-Yu, 2018. "Top management team characteristics and firm internationalization: The moderating role of the size of middle managers," International Business Review, Elsevier, vol. 27(1), pages 125-138.
    20. Reichstein-Scholz, Harriet & Giroud, Axèle & Yamin, Mo & Andersson, Ulf, 2021. "Sales to centre stage! Determinants of the division in strategic sales decisions within the MNE," International Business Review, Elsevier, vol. 30(6).
    21. Jean, Ruey-Jer “Bryan” & Sinkovics, Rudolf R. & Kim, Daekwan & Lew, Yong Kyu, 2015. "Drivers and performance implications of international key account management capability," International Business Review, Elsevier, vol. 24(4), pages 543-555.

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