By Niels G. Noorderhaven (auth.), Niels G. Noorderhaven (eds.)
Multinational businesses (MNCs) are often pictured as being on the leading edge of world integration.They face robust incentives to maximise economies of scale in learn and improvement, purchaising, construction and advertising and marketing, and come upon low boundaries within the dissemination of applied sciences and top practices. This detailed factor brings jointly numerous papers that target various elements of the strain among international and native inside MNCs.
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Extra info for Management and International Review: Can Multinationals Bridge the Gap Between Global and Local?
Galbraith (1973) defines uneertainty as " ... the difference between the amount of information required to perform the task and the amount of information already possessed by the organization" (p. 5). The essence of informationprocessing theory is that the information-processing requirements due to uneertainty in the environment should be matched with the information-processing capacities created by the organization (Galbraith 1973, TushmanlNadler 1978). With respeet to global integration, the coordination of interdependent activities is diffieult because the global eompany operates in several countries in environments characterized by a high degree of rivalry.
Intra-firm trade statisties reveal the magnitude of the international produet flows between units of MNE networks. Approximately 20 years ago, intrafirm shipments aeeounted for 24 percent of the entire US manufaeturing trade (Hippie 1990). This fraetion has become even more pronouneed in re cent years. The aggregate value of intrafirm exports has fluctuated between 32 and 40 percent of US exports in goods, and between 37 and 43 percent of US imports in goods, for the period 1982-1994 (Zeile 1997).
This information was eolleeted from the finaneial statements of US companies. mir vol. 43 . Special Issue . 200312 35 Alfredo J. MaurilRakesh B. Sambharya According to the Financial Accounting Standards No. 14 (FAS 14), companies are required to disclose information on their operations in geographic areas that represent sales or assets greater than 10 percent of the amounts presented in the consolidated financial statements. In addition to inter-area sales, sales to unaffiliated customers, identifiable assets, and operating income are disclosed.
Management and International Review: Can Multinationals Bridge the Gap Between Global and Local? by Niels G. Noorderhaven (auth.), Niels G. Noorderhaven (eds.)