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Effectively Conceiving and Executing Multinationals′ Worldwide Strategies

Author

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  • W Chang Kim

    (The European Institute of Business Administration)

  • Renée A Mauborgne

    (The European Institute of Business Administration)

Abstract

This study addresses one of the most compelling questions in the field of international management: How can a multinational simultaneously pursue the double-ended objective of effectively conceiving and executing its worldwide strategy? Here we examine the ways in which the dynamics of the strategy-making process between head office and subsidiary units influence the multinational's ability to achieve these two objectives. Specifically, we introduce the concept of procedural justice, the intellectual root of which is grounded in social psychology and law, into the international management and explore the impact of process fairness on multinationals′ ability to conceive and execute effective worldwide strategies. The results of this research are based on a two-phase longitudinal study of the decision making dynamics of nineteen multinationals. They provide support that the exercise of procedural justice is indeed a powerful way to organize the multinationals′ strategy-making process. Procedural justice was found to significantly augment multinationals′ ability to achieve this double-ended objective.© 1993 JIBS. Journal of International Business Studies (1993) 24, 419–448

Suggested Citation

  • W Chang Kim & Renée A Mauborgne, 1993. "Effectively Conceiving and Executing Multinationals′ Worldwide Strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(3), pages 419-448, September.
    • Handle: RePEc:pal:jintbs:v:24:y:1993:i:3:p:419-448
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    Citations

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    Cited by:

    1. Tihanyi, Laszlo & Thomas, Wayne B., 2005. "Information-processing demands and the multinational enterprise: a comparison of foreign and domestic earnings estimates," Journal of Business Research, Elsevier, vol. 58(3), pages 285-292, March.
    2. Alain Verbeke & Wenlong Yuan, 2007. "Entrepreneurship in multinational enterprises: A Penrosean perspective," Management International Review, Springer, vol. 47(2), pages 241-258, March.
    3. Sahaym, Arvin & Nam, Daeil, 2013. "International diversification of the emerging-market enterprises: A multi-level examination," International Business Review, Elsevier, vol. 22(2), pages 421-436.
    4. Lin, Shao-Lung & Hsieh, An-Tien, 2010. "The integration-responsiveness framework and subsidiary management: A response," Journal of Business Research, Elsevier, vol. 63(8), pages 911-913, August.
    5. Brauer, Matthias & Heitmann, Mark, 2013. "Antecedents and temporal dynamics of strategic divergence in multinational corporations: Evidence from Europe," Journal of World Business, Elsevier, vol. 48(1), pages 110-121.
    6. Dooms, E., 2005. "Control in multidivisional firms : Levels issues and internal differentiation," Other publications TiSEM bc7c1906-d54c-46e5-9d8e-1, Tilburg University, School of Economics and Management.
    7. Drogendijk, Rian & Holm, Ulf, 2012. "Cultural distance or cultural positions? Analysing the effect of culture on the HQ–subsidiary relationship," International Business Review, Elsevier, vol. 21(3), pages 383-396.
    8. Lin, Shao-Lung & Hsieh, An-Tien, 2010. "International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice," Journal of Business Research, Elsevier, vol. 63(1), pages 52-59, January.
    9. Samiee, Saeed & Athanassiou, Nicholas, 1998. "International Strategy Research: Cross-Cultural Methodology Implications," Journal of Business Research, Elsevier, vol. 43(2), pages 79-96, October.
    10. Ricart, Joan E. & Enright, Michael J. & Ghemawat, Pankaj & Khanna, Tarun & Hart, Stuart L., 2003. "New frontiers in international strategy," IESE Research Papers D/532, IESE Business School.
    11. Taggart, J. H., 1999. "MNC subsidiary performance, risk, and corporate expectations," International Business Review, Elsevier, vol. 8(2), pages 233-255, April.

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