International Management Chapter 12

Integration-responsiveness framework
An MNE management framework for simultaneously dealing with the pressures for both global integration and local responsiveness
Local responsiveness
The need to be responsive to different customer preferences around the world
Home replication strategy
A strategy that emphasizes duplicating home country-based competencies in foreign countries
Localization (or multidomestic) strategy
A strategy that focuses on a number of foreign countries/regions, each of which is regarded as a stand-alone local (domestic) market worthy of significant attention and adaption
Global standardization strategy
A strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages
Center of excellence
An MNE subsidiary explicitly recognized as a source of important capabilities that can be leveraged by and/or disseminated to other subsidiaries
Worldwide (or global) mandate
A charter to be responsible for one MNE function throughout the world
Transnational strategy
A strategy that endeavors to be simultaneously cost efficient, locally responsive, and learning driven around the world
International division
An organizational structure that is typically set up when a firm initially expands abroad, often engaging in a home replication strategy
Geographic area structure
An organizational structure that organizes the MNE according to different countries and regions
Country (or regional) manager
The business leader of a specific country (or geographic region)
Global product division structure
An organizational structure that assigns global responsibilities to each product division
Global matrix
An organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures , particularly when adopting a transnational strategy
Subsidiary initiative
The proactive and deliberate pursuit of new opportunities by a subsidiary to expand its scope of responsibilities
Organizational culture
The collective programming of the mind that distinguishes members of one organization from another
Knowledge management
The structures, processes, and systems that actively develop, leverage, and transfer knowledge
Explicit knowledge
Knowledge that is codifiable (that is, can be be written down and transferred with little loss of richness)
Tacit knowledge
Knowledge that is non-codifiable, whose acquisition and transfer require hands-on practice