A Dynamic Global Integration and Local Responsiveness Framework.pdf - I R M B www.irmbrjournal.com R International Review of Management and Business

A Dynamic Global Integration and Local Responsiveness Framework.pdf

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ISSN: 2306-9007 Liao & Le (2017) 1394 I December 2017 I nternational R eview of M anagement and B usiness R esearch V ol. 6 I ssue.4 R M B R A Dynamic Global Integration and Local Responsiveness Framework: Understanding Strategic Movements of Multinational Enterprises TUNG-SHAN LIAO The College of Management, Yuan Ze University Email: [email protected] Tel: +886 34638000 UYEN-MINH LE The College of Management, Yuan Ze University Email: [email protected] Tel: +886 34638000 Abstract The aim of this paper is to further the understanding of the interactive relationships between environmental dynamics and the strategic development of multinational enterprises. A dynamic perspective on the global- integration and local-responsiveness (IR) framework is introduced and a dynamic IR framework proposed. Our analysis follows the logic of content analysis with a multiple-case study methodology. There are 25 cases collected from public case banks such as the Harvard Business School, the Asia Case Research Center and the IBS Center for Management Research, etc. Eight types of strategic movements and the pattern of environmental forces are identified and discussed. Our empirical evidence shows that the strategic development of most MNEs is determined by the environmental forces. We suggest that our dynamic IR framework presents an expanded and advanced work as a guide for MNEs to foretell and conduct proper strategic movements to compete against environmental opportunities and threats. Key Words: Dynamic View, Global-Integration and Local-Responsiveness Framework, International Business, Strategic Change, Content Analysis. Introduction The global integration and local responsiveness (IR) framework (Bartlett and Ghoshal, 1993) is viewed as one of the most influential theories in the international management field. It has contributed to the generalized and integrated understanding of how a multinational firm‟s operations and value chain embeds into the global market, as well as its conducting of strategic development (Bartlett and Ghoshal, 1993; Kanter and Dretler, 1998; Powers and Loyka, 2010). The IR framework provides business managers and academic researchers with a systematic approach by which to frame and guide multina tional enterprises‟ (MNE) strategic formation and implementation (Bartlett and Ghoshal, 1993; Cavusgil, Knight, & Riesenberger, 2011; Daniels, Radebaugh, & Sullivan, 2013; Devinney, Midgley, & Venaik, 2000). According to IR analysis, environmental pressures can be generalized into two determinants: global integration (GI) and local responsiveness (LR). GI pressure is strongly affected by the degree of
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ISSN: 2306-9007 Liao & Le (2017) 1395 I December 2017 I nternational R eview of M anagement and B usiness R esearch V ol. 6 I ssue.4 R M B R globalization and is a reflection of the central coordination management system, which integrates an MNE‟s global business operations through close cooperation and interdependence between its headquarters and its international subsidiaries. LR pressure is generally detected by the degree of consumer divergence
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