Peng_Chapter 13 - CORPORATE CONTROLS vs SUBSIDIARY...

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PRESSURES FOR COST REDUCTIONS AND LOCAL RESPONSIVENESS Integration-Responsiveness framework -   means by  which MNEs primarily confront two sets of pressures:  cost reductions local responsiveness local responsiveness -  unique consumer preferences and  host country demands on cost reductions
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KNOWLEDGE MANAGEMENT PROBLEMS AND  SOLUTIONS social capital -  informal benefits individuals and organizations derive from their social structures and networks micro-macro link -  informal interpersonal relationships  (micro) among managers of different units that may greatly  facilitate intersubsidiary cooperation (macro) among various units
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Unformatted text preview: CORPORATE CONTROLS vs. SUBSIDIARY INITIATIVES Subsidiaries are not necessarily at the receiving end of commands from headquarters - some subsidiaries may be in full compliance, others may pay lip service, and still others may simply refuse to adopt, citing local differences. Some subsidiaries may actively pursue their own subsidiary-level strategies and agendas. From the perspective of corporate headquarters, it is hard to distinguish between good-faith subsidiary initiative and opportunistic “empire building.”...
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  • Fall '08
  • chen
  • local responsiveness, cost reductions, SUBSIDIARY  INITIATIVES, unique consumer preferences, informal interpersonal relationships, KNOWLEDGE MANAGEMENT PROBLEMS

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