ABSTRACT

Globalization has led to the emergence of organizations that span national borders and cultures (Adler, 1986). Multinational organizations (MOs) need to create a balance between local responsiveness and global integration (Prahalad & Doz, 1987; Bartlett & Ghoshal, 1990; Dowling et al., 1994). It is important for MOs to leverage their worldwide knowledge and resources through global integration for efficiency. Meanwhile, MOs need to be responsive to their local operating environment so that they are relevant and effective to the different contexts they operate within. The balance between global integration and local responsiveness is unique to each organizational circumstance.