ABSTRACT

In recent years it has become evident that traditional organizational forms may no longer be sufficient for achieving or maintaining competitive advantage on a worldwide basis. Nowhere is this more evident than in the case of the multinational enterprise (MNE) operating in a global industry environment. Competing in a global industry requires extensive strategic co-ordination among the various subsidiaries of the MNE, resulting in a high level of interdependence between subsidiaries. This has led multinational firms to develop and implement strategies, structures, organizational processes, and systems that enable the firm to capitalize on the advantages of interdependencies that exist among its various sub-units, most clearly in differentiated network organizations.