Implementation of Global Strategy

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Manag Int Rev (2011) 51:179–192 DOI 10.1007/s11575-011-0071-6 R e s e a R c h a Rt i c l e Effective Global Strategy Implementation Structural and Process Choices Facilitating Global Integration and Coordination Attila Yaprak · Shichun Xu · Erin Cavusgil Abstract: 0 0 this article offers a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to address is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world markets. Our central premise is that MNEs’ capabilities in establishing supporting structural and process…show more content…
Peng et al. (2008) articulates a framework in which firm resources and capabilities are viewed as one of three antecedents of a firm’s international business strategy (the other two being industry based competition and institutional conditions and transitions). Thus, the current literature sheds light only on how the capabilities of MNEs enable them to formulate appropriate strategic choices that match their resources with opportunities in their external, that is, their global, environment. However, mechanisms that ensure successful implementation of the chosen strategies remain unclear. While we assume that MNEs should be able to establish appropriate structures to match their strategies, research has shown that there is a lot of incongruence between MNE strategy and structure (Duysters and Hagedoorn 2001). Effective Global Strategy Implementation 181 Based on this backdrop and drawing from the strategic fit literature, the purpose of this paper is to offer a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to answer is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world markets. Our central premise is that MNEs’ capabilities in establishing
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