The Organization of Global Service MNEs

Since the seminal work of Chandler (1962), the notion of a linkage between strategy and structure has become widely accepted — that is, if an organization is to implement its strategy most effectively, it needs the appropriate structure and support systems. At the same time, it needs the flexibility to exploit strategic options that arise from environmental changes. However, at least in the short run, a firm cannot easily change its organizational structure, and this may be a major impediment to its ability to change its strategy. In an increasingly globally integrated world, firms attempting to become major players in their industry need to cope with and exploit environmental changes and adjust their organizational structure to create what Bartlett & Ghoshal (1989) termed “transnational” organizations. In other words, firms need to be able simultaneously to achieve local responsiveness, global efficiency, and the creation of knowledge (learning)…