Abstract
In the last decade there has been increasing recognition that the international firm (in the strict sense of one with operations in both national and international markets) is organised as a heterogeneous entity built up of subunits with specific operative responsibilities and specific interrelated roles (Hedlund, 1986; Bartlett and Ghoshal, 1989; Nohria and Ghoshal, 1994; Malnight, 1996). Thus, certain subsidiaries within the international firm are regarded as being especially competent in one or several functional areas. For instance, because of its competence with a particular product, a foreign subsidiary can become globally responsible for production. Similarly, another subsidiary can be specialised in the development of a product, while a third can have responsibility for marketing and international sales. Having one or several operational competences — interrelated with the operational roles of other units of the firm — the specific subsidiary can become a strategic ‘partner’ of the firm’s headquarters (Bartlett and Ghoshal, 1989), with potential impact on strategic decisions (Astley and Zajac, 1990; Ghoshal and Bartlett, 1990).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Amit, R. and P.L.H. Schoemaker (1993) ‘Strategic Assets and Organizational Rent’, Strategic ManagementJournal 14, 33–46.
Andersson U. and J. Johanson (1997) ‘International Business Enterprise’, in I. Björkman and M. Forsgren (eds), The Nature of the International Firm — Nordic Contributions to International Business Research, Copenhagen Business School Press, Handelshojskolens Forlag, 33–49.
Astley, W.G. and EJ. Zajac (1990) ‘Beyond Dyadic Exchange: Functional Interdependence and Sub-Unit Power’, Organization Studies, 11 (4), 481–501.
Bartlett, C.A. and S. Ghoshal (1989) Managing Across Borders, Cambridge, Mass.: Harvard Business Press.
Beige, C.E. and J.K. Stewart (1986) ‘Industrial Adjustments and World Product Mandates: A Role for Public Policy’, in H. Etemad and L.S. Séguin Delude (eds), Managing the Multinational Subsidiary. Response to Environmental Changes and to Host Nation R&D Policies, London: Croom Helm, 23–46.
Bilkey, W J. and G. Tesar (1977) ‘The Export Behaviour of Smaller Wisconsin Manufacturing Firms’, Journal of International Business Studies 8 (Spring/Summer), 93–8.
Birkinshaw, J.M. and AJ. Morrison (1995) ‘Configurations of Strategy and Structure in Subsidiaries of Multinational Corporations’, Journal of International Business Studies, (4), 729–53.
Bonin, B. and B. Perron (1986) ‘World Product Mandate and Firms Operating in Quebec’, in H. Etemad and L.S. Séguin Delude (eds), Managing the Multinational Subsidiary. Response to Environmental Changes and to Host Nation R&D Policies, London: Croom Helm, 161–76.
Crookell, H. and J. Caliendo (1980) ‘International Competitiveness and the Structure of Secondary Industry in Canada’, Business Quarterly, 45 (3), 58–64.
Forsgren, M. (1989) Managing the Internationalization Process: The Swedish Case, London: Routledge.
Forsgren, M., U. Holm and J. Johanson (1992) ‘Internationalisation of the Second Degree — The Emergence of European Based Centres in Swedish International Firms’, in S. Young (ed), Europe and the Multinationals; Issues and Responses for the 1990s, London: Elgar, 235–53.
Forsgren, M., U. Holm and P. Thilenius (1997) ‘Network Infusion in the Multinational Corporation — Business Relationships and Subsidiary Influence’, in I. Björkman and M. Forsgren (eds), The Nature of the International Firm, Handelshojskolens Forlag, Copenhagen: Copenhagen Business School Press, 475–94.
Ghoshal, S. and C. A. Bartlett (1990) ‘The Multinational Corporation as an Interorganizational Network’, Academy of Management Review, 15 (4), 603–25.
Gupta, A.K. and V. Govindarajan (1991) ‘Knowledge Flows and the Structure of Control within Multinational Corporations’, Academy of Management Review, 16 (4), 768–92.
Gupta, A.A. and V. Govindarajan (1994) ‘Organizing Knowledge Flows within MNCs’, International Business Review, 3 (4), 443–57.
Grant, R. (1991) ‘The Resource-Based Theory of Competitive Advantage. Implications for Strategy Formulation’, California Management Review, Spring, 114–35.
Hallén, L., J. Johanson and N. Seyed-Mohamed (1991) ‘Interfirm Adaptation in Business Relationships’, Journal of Marketing 55, April, 29–37.
Holm, U., J. Johanson and P Thilenius (1995) ‘Headquarters’ Knowledge of Subsidiary Network Contexts in the Multinational Corporation’, International Studies of Management and Organization, 25 (1–2), 97–120.
Hedlund G. (1986) ‘The Hypermodern MNC — A Heterarchy?’, Human Resource Management, 25 (1), 9–35.
Johanson, J. and J.E. Vahlne (1977) ‘The Internationalization Process of the Firm — A Model of Knowledge Development and Increasing Foreign Market Commitment’, Journal of International Business Studies, 8 (Spring/Summer), 23–32.
Johanson, J. and J.-E. Vahlne (1990) ‘The Mechanism of Internationalization’, International Marketing Review, 7 (4), 11–24.
Johanson, J. and F. Weidersheim-Paul (1975) ‘The Internationalization of the Firm — Four Swedish Cases’ Journal ofManagement Studies, 12, 305–22.
Lorenz, C. (1994) ‘Cross Border Victory, National Causality’, Financial Times, 6 May.
Lorenzoni, G. and C. Baden-Fuller (1995) ‘Creating a Strategic Centre to Manage a Web of Partners’, California Management Review, 37 (3), 146–63.
Mahoney,J.T. and R. Pandian (1992) ‘The Resource-Based View Within the Conversation of Strategic Management’, Strategic Management Review, 13, 363–80.
Malnight, T.W. (1996) ‘The Transition from Decentralized to Network-Based MNC Structures: An Evolutionary Perspective’, Journal of International Business Studies, 27 (1) 43–65.
Nohria, N. and S. Ghoshal (1994) ‘Differentiated Fit and Shared Value: Alternative for Managing Headquarters-Subsidiary Relations’, Strategic ManagementJournal 15, 491–502.
Nordström, K.A. (1991) The Internationalization Process of the Firm - Searching for New Patterns and Explanations, Institute of International Business, Stockholm School of Economics.
Peteraf, M.A. (1993) ‘The Cornerstones of Competitive Advantage: A Resource-Based View’, Strategic ManagementJournal 14, 179–91.
Poynter, T.A. and A.M. Rugman (1982) ‘World Product Mandates: How Will Multinationals Respond?’, Business Quarterly, 46 (3), 54–61.
Porter, M.E., O. Sölvell and I. Zander (1991) Advantage Sweden, Stockholm: Nordsted is Juridikförlag.
Roth, K. and AJ. Morrison (1990) ‘An Empirical Analysis of the Integration-Responsiveness Framework in the Global Industries’, Journal of International Business Studies 21 (4), 541–64.
Rugman, A.M. and S. Douglas (1986) ‘The Strategic Management of Multinationals and World Product Mandating’, in H. Etemad and L.S. Séguin Delude (eds), Managing the Multinational Subsidiary. Response to Environmental Changes and to Host Nation R&D Policies, London: Croom Helm, 90–102.
Snow, C. C., R.E. Miles and HJ. Coleman Jr (1992) ‘Managing 21st Century Network Organizations’, Organizational Dynamics, 20, Winter, 5–19.
Surlemont, B. (1994) ‘The Development of Strategic Centres of Excellence (SCE) in Multinational Corporations (MNCs): the Role of Organizational Context’, paper presented at the Strategic Management Society’s 14th Annual International Conference, Jouy-en-Josas, France, September.
Swedenborg, B., G. Johansson-Grahn and M. Kinnwall (1988) Den Svenska Industrins Utlandsinvesteringar 1960–1986, Stockholm: Industrins Utredingsinstitut.
Teece, D., G. Pisano and A. Shuen (1990) ‘Firm Capabilities, Resources and the Concept of Strategy’, Consortium on Competitiveness & Cooperation, working paper no. 90–8, University of California.
Wolf, B.M. (1986) ‘World Product Mandates and Trade’, in H. Etemad and L.S. Séguin Delude (eds), Managing the Multinational Subsidiary. Response to Environmental Changes and to Host Nation R&D Policies, London: Croom Helm, 207–19.
Yamagishi, T., M. Gillmorè and K. Cook (1988) ‘Network Connections and the Distribution of Power in Exchange Networks’, AmericanJournal of Sociology, 93, 833–51.
Editor information
Editors and Affiliations
Copyright information
© 1998 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Fratocchi, L., Holm, U. (1998). Centres of Excellence in the International Firm. In: Birkinshaw, J., Hood, N. (eds) Multinational Corporate Evolution and Subsidiary Development. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26467-4_8
Download citation
DOI: https://doi.org/10.1007/978-1-349-26467-4_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-26469-8
Online ISBN: 978-1-349-26467-4
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)