ABSTRACT

This chapter first discusses the organizational design options available to implement the various multinational strategies. It therefore discusses the many options available to design the organization and will also show how having the right organizational design is crucial for multinational companies (MNCs) to achieve their multinational strategic goals. Organizational design and coordination aspects are very closely related to an organization's ability to manage information and knowledge. However, to deal with the shortcomings of the international division structure, MNCs have several options, such as the worldwide geographic structure, the worldwide product structure, the matrix structure, and the transnational network structure. The choice of an organizational design depends mostly on the choice of strategy. The chapter completes consideration of organizational design by showing how managers can coordinate the various types of subunits that multinational organizations employ.