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Managing the Integration Responsiveness Dilemma

In: The New Role of Regional Management

Author

Listed:
  • Björn Ambos

    (Vienna University of Economics and Business Institute for International Marketing and Management)

  • Bodo B. Schlegelmilch

    (Vienna University of Economics and Business Institute for International Marketing and Management)

Abstract

As outlined in the introduction to this book, one of the most persistent challenges for any firm doing business at an international scale is to manage the latent trade-off between global integration and local adaptation.1 On the one hand, there are pressures to respond to the unique needs of the individual country markets. On the other hand, there are efficiency pressures that encourage companies to de-emphasize local differences and conduct business in a similar way throughout the world. The global integration — local responsiveness trade-off engages the firm at multiple levels, involving its overall strategy, the architectural configuration of the firm as well as the operational aspects of the firm, for example, the adaptation of individual prices or advertising campaigns to a given market. In this section, we will first summarize the key drivers of local adaptation and global integration. Based on this understanding, we will discuss common approaches to deal with this global — local trade-off. Building on our own data and recent evidence by an increasing number of scholars,2 we conclude that, for most firms, the integration — responsiveness dilemma is probably best solved on a regional basis.

Suggested Citation

  • Björn Ambos & Bodo B. Schlegelmilch, 2010. "Managing the Integration Responsiveness Dilemma," Palgrave Macmillan Books, in: The New Role of Regional Management, chapter 3, pages 50-64, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27387-0_3
    DOI: 10.1057/9780230273870_3
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