There are 3 attitudes of international managers toward building an

There are 3 attitudes of international managers

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There are 3 attitudes of international managers toward building an multinational firm. 1) Home-country oriented (enthocentric)– Belief that the executives from the home country are more reliable and are superior to their foreign counterparts. Keep ideas and secrets to themselves. Feel the standards of the host country should be applied to other places. 2) Host-country oriented (polycentric) – The organizational complexity is different in each area and are independent of each other. Decisions are made more locally instead of at headquarters. Standards for conduct and performance are determined locally. There is a variation of incentives and punishments at subsidiary levels. The subsidiary identifies with the nationality of the host country instead of where HQ is located. People are recruited locally for positions at the subsidiary. 3) World-oriented (geocentric) – The complexity becomes more complex and interdependent of one another when geocentric. Collaboration is key when making decisions. There is a need to find standards that work universally and locally. Rewards come from meeting local and global goals. Communication is frequent between HQ and subsidiaries as well as between subsidiaries.
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  • Fall '14
  • IDK
  • Business, Globalization, Corporation, Geocentric cost derive, Columbia Journal of World Business

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