ABSTRACT
New developments in the international business environment pose exciting challenges for the management of multinational corporations (MNCs). More ambitious global strategies necessitate closer co-ordination of activities. The diffusion of technological and managerial competence internationally gives rise to more vigilant competition, but also creates opportunities for scanning for new ideas by MNCs. As the task of managing becomes more complex, there are signs that currently prevailing models for organizing and controlling international operations do not suffice. Most experienced MNCs wrestle with striking a balance between straightforward but perhaps simplistic structures, on the one hand, and sophisticated but perhaps unwieldy ones, on the other. The dominating archetype in terms of formal organization structure — the global product division — shows signs of weakness.
