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The struggle for strategic alignment in multinational corporations:: Managing readjustment during global expansion

Author

Listed:
  • Rondinelli, Dennis
  • Rosen, Benson
  • Drori, Israel

Abstract

As corporations expand internationally, their ability to align their internal business strategies and management practices to conditions in external marketplaces becomes critical for sustaining growth and expanding market share. When international expansion decisions become 'unaligned' with business strategy, organizational structure, and managerial processes, corporations can lose sales and market share, incur increasing costs and inefficiencies, generate discontent among customers and suppliers, engender internal organizational conflict, and lose strategic direction. Spontaneous international expansion creates challenging opportunities for some managers, but makes others confused about their roles, responsibilities, and reporting relationships.

Suggested Citation

  • Rondinelli, Dennis & Rosen, Benson & Drori, Israel, 2001. "The struggle for strategic alignment in multinational corporations:: Managing readjustment during global expansion," European Management Journal, Elsevier, vol. 19(4), pages 404-416, August.
    • Handle: RePEc:eee:eurman:v:19:y:2001:i:4:p:404-416
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    Citations

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    Cited by:

    1. Owen, Sian & Yawson, Alfred, 2006. "Domestic or international: Divestitures in Australian multinational corporations," Global Finance Journal, Elsevier, vol. 17(2), pages 282-293, December.
    2. Graham, Michael & Martey, Emmanuel & Yawson, Alfred, 2008. "Acquisitions from UK firms into emerging markets," Global Finance Journal, Elsevier, vol. 19(1), pages 56-71.
    3. M. N. Ravishankar & Shan L. Pan & Dorothy E. Leidner, 2011. "Examining the Strategic Alignment and Implementation Success of a KMS: A Subculture-Based Multilevel Analysis," Information Systems Research, INFORMS, vol. 22(1), pages 39-59, March.
    4. Lukas Isenberg & Susanne Kreiter & Roland Helm & Christian Schmitz, 2022. "Marketing control in international headquarters-subsidiary working relationships of industrial goods firms: the role of environmental context," Journal of Business Economics, Springer, vol. 92(6), pages 1035-1064, August.
    5. Cao, Jack & Owen, Sian & Yawson, Alfred, 2008. "Analysing the wealth effects of UK divestitures: An examination of domestic and international sales," Research in International Business and Finance, Elsevier, vol. 22(1), pages 68-84, January.
    6. Mühlbacher, Hans & Böbel, Ingo, 2019. "From zero-sum to win-win - Organisational conditions for successful shared value strategy implementation," European Management Journal, Elsevier, vol. 37(3), pages 313-324.
    7. Song, Sangcheol, 2022. "Determining investment size and local embeddedness under host market uncertainty and growth rates," International Business Review, Elsevier, vol. 31(2).
    8. Hutzschenreuter, Thomas & Horstkotte, Julian, 2013. "Managerial services and complexity in a firm’s expansion process: An empirical study of the impact on the growth of the firm," European Management Journal, Elsevier, vol. 31(2), pages 137-151.
    9. Hassan Alghamdi & Lily Sun, 2017. "Business and IT Alignment in Higher Education Sector," International Journal of Technology and Engineering Studies, PROF.IR.DR.Mohid Jailani Mohd Nor, vol. 3(1), pages 01-08.

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