Multinational Corporations : Is There A Difference?

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Multinational Corporations – Is there a Difference? “Researchers and theorists suggest that the skills and techniques of a MNC are very different than those of an organization without a global presence.” In any organization, management skills and techniques are increasingly gaining importance. Further, organizational structure facilitates leadership’s ability to adapt in an ever-changing environment, specifically, an environment in which global relations continue to be developed and emphasized. As cited in Simply Managing, what makes a leader successful is the ability to “…flourish in a demanding environment. To collaborate for the greater good. To set clear direction in a rapidly changing world. To be fearlessly decisive” (Mintzberg,…show more content…
232). The results argue that an organization’s structure and its consequential management style should differ from other formal structures and reflect the different levels of foreign involvement and foreign product diversity (Lamont, et al. 2000). This paper will examine these differences, argue their importance, and ultimately suggest a management approach that I believe to be most relevant for an MNC Manager.
Comparison and Contrast – MNC vs. Non-Global Organization
As discussed above, management technique must take into consideration the extent of its organization’s international involvement. In doing so, differences in managing style (as well as some similarities) between that of a MNC and an organization without global presence become apparent. Petrick, Scherer, Brodzinski, Quinn and Ainina discuss how these internationally based skills (leadership competencies) are a direct input to sustainable global competitive advantage: “Successful corporate executives, when applying their global leadership style…enhance the intangible asset of corporate sustainable competitive advantage” (p. 58). In the table below, I outline management skills that are useful for both MNCs and non-global organizations and then differentiate them based on their setting.
Skill/Technique Global Context (MNC) Non-global Organization
Exercising balanced judgment Strategic decision making that factors in environmental concerns Strategic decision making that focuses
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