Multinational Management A Strategic Approach

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ISBN: 9780324259902 | 0324259905
Cover: Hardcover
Copyright: 2/19/2004

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MULTINATIONAL MANAGEMENT: A STRATEGIC APPROACH uses strategy as its unifying theme to explore the global economy and the impact of managerial decisions. By examining comparative management issues thoroughly, this text reveals the strengths and weaknesses of competitors and how to adapt organizational practices. Cullen/Parboteeah also covers the key topics of formation and implementation of strategies in the global environment, the building of strategic alliances, negotiation and cross-cultural communication, international human resource management, and business ethics.

Preface

xiv

About the Authors

Part 1 FOUNDATIONS OF MULTINATIONAL MANAGEMENT

(122)

Multinational Management in a Changing World

(40)

The Nature of the Multinational Company

(2)

The Globalizing Economy: A Changing (But Not Always Stable) Environment for Business

(19)

Countries of the World: The Arrived, the Coming, and the Struggling

(1)

Borders Are Disintegrating: The World Trade Organization and Free Trade Areas

(3)

Sell Anywhere, Locate Anywhere: Trade and Foreign Investment Are Growing But Setbacks Are Part of the Challenge

(7)

The Internet and Information Technology Are Making It All Easier

(3)

The Rise of Global Products and Global Customers

(2)

The State Is Getting Out of Business

(1)

New Competitors Are Emerging

(1)

The Rise of Global Standards

(2)

The Next Generation of Multinational Managers

(2)

Multinational Management: A Strategic Approach

(1)

Summary and Conclusions

(1)

Discussion Questions

(1)

Multinational Management Skill Builder: Interview a Multinational Manager

(1)

Endnotes

(1)

Chapter Case: ABB in China: 1998

(12)

Culture and Multinational Management

(36)

What Is Culture?

(2)

Levels of Culture

(1)

National Culture

(1)

Business Culture

(1)

Occupational Culture and Organizational Culture

(3)

Cultural Differences and Basic Values: Two Diagnostic Models to Aid the Multinational Manager

(20)

Hofstede's Model of National Cuture

(2)

Uncertainty Avoidance

(9)

7d Cultural Dimensions Model

(9)

Propensity to Trust: A Cultural Dimension of Increasing Importance

(1)

Caveats and Cautions

(2)

Summary and Conclusions

(1)

Discussion Questions

(1)

Multinational Management Skill Builder: A Briefing Paper

(1)

Endnotes

(1)

Chapter Case: Old Corporate Ways Fade as New Korean Generation Asserts Itself

(2)

The Institutional Context of Multinational Management

(45)

Social Institutions and Influence of Society

(2)

Economic Systems

(6)

Industrialization

(4)

Religion

(9)

Education

102

(3)

Organizations Alike: Globalization and Convergence

105

(1)

The National Context and International Management

106

(1)

Summary and Conclusions

107

(1)

Discussion Questions

108

(1)

Multinational Management Skill Builder: A Presentation

108

(1)

Endnotes

109

(1)

Chapter Case: Anglo-American College in Prague (AAC): The Challenge to Lead in Post-Communist Czech Republic

110

(7)

Integrating Case 1: Organizational and National Cultures in a Polish/U.S. Joint Venture

117

(6)

Part 2 STRATEGY CONTENT AND FORMULATION FOR MULTINATIONAL COMPANIES

123

(132)

Strategic Management in the Multinational Company: Content and Formulation

124

(24)

Basic Strategy Content Applied to the Multinational Company

125

(9)

Competitive Advantage and Multinational Applications of Generic Strategies

126

(1)

How Do Low-Cost and Differentiation Firms Make Money?

126

(1)

Competitive Advantage and the Value Chain

127

(2)

Distinctive Competencies

129

(1)

Sustaining Competitive Advantage

129

(1)

Offensive and Defensive Competitive Strategies in International Markets

130

(3)

Multinational Diversification Strategy

133

(1)

Strategy Content: Brief Conclusions

134

(1)

Strategy Formulation: Traditional Approaches

134

(7)

Industry and Competitive Analyses

134

(4)

Company-Situation Analysis

138

(2)

Corporate Strategy Selection

140

(1)

Organizations Alike: Globalization and Convergence

141

(3)

The National Context and Organizational Strategy: Overview and Observations

143

(1)

Summary and Conclusions

144

(1)

Discussion Questions

144

(1)

Multinational Management Skill Builder: Identifying Distinctive Competencies and Generic Strategies

145

(1)

Endnotes

145

(1)

Chapter Case: Motorola in China

146

(2)

Multinational and Participation Strategies: Content and Formulation

148

(48)

Multinational Strategies: Dealing with the Global-Local Dilemma

149

(5)

Multidomestic Strategy

150

(1)

Transnational Strategy

150

(3)

International Strategy

153

(1)

Regional Strategy

153

(1)

A Brief Summary and Caveat

153

(1)

Resolving the Global-Local Dilemma: Formulating a Multinational Strategy

154

(5)

Global Markets

155

(1)

Costs

156

(1)

Governments

156

(1)

The Competition

156

(1)

A Caution

156

(1)

Competitive Advantage in the Value Chain

157

(1)

Transnational or International: Which Way for the Global Company?

158

(1)

The Global-Local Dilemma: Synopsis

159

(1)

Participation Strategies: The Content Options

159

(7)

Exporting

159

(2)

Licensing

161

(2)

International Strategic Alliances

163

(1)

Foreign Direct Investment

164

(2)

Formulating a Participation Strategy

166

(9)

Basic Functions of Participation Strategies

167

(5)

Choosing a Participation Strategy: General Strategic Considerations

172

(2)

Participation Strategies and the Multinational Strategies

174

(1)

Participation Strategies: Synopsis

175

(2)

Summary and Conclusions

177

(1)

Discussion Questions

178

(1)

Multinational Management Skill Builder

179

(4)

Endnotes

183

(1)

Chapter Case: Transition at Whirlpool-Tatramat: From Joint Venture to Acquisition

184

(12)

Small Businesses as Multinational Companies: Overcoming Barriers and Finding Opportunities

196

(59)

What Is a Small Business?

197

(1)

What Is an Entrepreneur?

197

(1)

Internationalization and the Small Business

198

(4)

The Small-Business Stage Model of Internationalization

198

(1)

Small-Business Global Start-Up

199

(2)

Small-Business E-Commerce

201

(1)

Overcoming Small-Business Barriers to Internationalization

202

(5)

Developing a Small-Business Global Culture

203

(1)

Changing Attitudes of Key Decision Makers

204

(1)

Gaining Experience: Duties and the Personal Life of the Small-Business CEO

205

(1)

Is Size a Barrier for Small-Business Internationalization?

205

(2)

Using the Small-Business Advantage

207

(1)

The Future: Falling Barriers to Multinational Small Businesses and More Global Start-Ups

207

(1)

When Should a Small Business Go International?

207

(3)

Getting Connected to the International Market

210

(6)

Participation Strategies

210

(1)

Finding Customers and Partners

210

(3)

Ready to Go and Connected: A Synopsis

213

(3)

New-Venture Strategies for Small Multinational Companies

216

(1)

New Product or Service and First-Mover Advantage

216

(2)

Copycat Businesses

217

(1)

Summary and Conclusions

218

(1)

Discussion Questions

219

(1)

Multinational Management Skill Builder: Take a Product International

219

(1)

Endnotes

220

(1)

Chapter Case: The Fleet Sheet

221

(9)

Integrating Case 1: Skoda Auto (The Czech Carmaker)

230

(9)

Integrating Case 2: Airview Mapping, Inc.

239

(16)

Part 3 MANAGEMENT PROCESSES IN STRATEGY IMPLEMENTATION: DESIGN CHOICES FOR MULTINATIONAL COMPANIES

255

(122)

Organizational Designs for Multinational Companies

256

(36)

The Nature of Organizational Design

257

(3)

A Primer On Organizational Structures

258

(2)

Organizational Structures to Implement Multinational Strategies

260

(14)

The Export Department

261

(1)

Foreign Subsidiaries

262

(1)

International Division

263

(2)

Worldwide Geographic Structure and Worldwide Product Structure

265

(2)

Hybrids and Worldwide Matrix Structures

267

(4)

The Transnational Network Structure

271

(3)

Beyond the Transnational: Is There a New Structure for the Multinational?

274

(3)

Multinational Strategy and Structure: An Overview

277

(1)

Implications For Small Multinational Companies

277

(1)

Control and Coordination Systems

278

(4)

Design Options for Control Systems

279

(2)

Design Options for Coordination Systems

281

(1)

Summary and Conclusions

282

(1)

Discussion Questions

283

(1)

Multinational Management Skill Builder: Build an Organization Structure for P&G

283

(1)

Endnotes

284

(1)

Chapter Case: Haute Innovations---International Virtual Teams Case Scenario

285

(7)

International Strategic Alliances: Management and Design

292

(32)

Where to Link in the Value Chain

293

(4)

Choosing a Partner: The Most Important Choice?

297

(3)

Choosing an Alliance Type

300

(3)

Informal and Formal International Cooperative Alliances

300

(1)

International Joint Ventures

301

(2)

Negotiating the Agreement

303

(1)

Building the Organization: Organizational Design in Strategic Alliances

304

(3)

Decision-Making Control

304

(1)

Management Structures

305

(1)

Choosing a Strategic Alliance Management Structure

306

(1)

Building the Organization: Human Resource Management in Strategic Alliances

307

(2)

Commitment and Trust: The Soft Side of Alliance Management

309

(5)

The Importance of Commitment and Trust

309

(2)

Building and Sustaining Trust and Commitment

311

(3)

Assessing the Performance of an International Strategic Alliance

314

(1)

If the Alliance Does Not Work

315

(1)

Learning to Partner: Building a Dedicated Strategic Alliance Unit

316

(1)

Summary and Conclusions

316

(1)

Discussion Questions

317

(1)

Multinational Management Skill Builder: Compare and Contrast International Joint Venture Contracts

317

(1)

Endnotes

317

(1)

Chapter Case: PBS (B): The ABB PBS Joint Venture in Operation

318

(6)

Multinational E-Commerce: Strategies and Structures

324

(53)

The Internet Economy

325

(4)

What Is E-Commerce?

325

(2)

The Internet Economy

327

(2)

Fundamentals of E-Commerce Strategy and Structure

329

(4)

Five Steps for Successful E-Commerce Strategy

329

(2)

E-Commerce Structure: Integrated or Autonomous

331

(1)

Additional Operational Challenges for an E-Commerce Business

331

(2)

Globalizing Through the Internet

333

(10)

Multinational E-Commerce Strategy Formulation

333

(4)

Multinational E-Commerce Strategy Implementation

337

(6)

Summary and Conclusions

343

(1)

Discussion Questions

343

(1)

Multinational Management Skill Builder

343

(1)

Endnotes

344

(1)

Chapter Case: The Failure of Boo.com

345

(6)

Integrating Case 1: Sts Manufacturing in China: Mark Hanson Returns From Vacation

351

(9)

Integrating Case 2: Enersis: Global Strategy in the Electric Power Sector

360

(17)

Part 4 STRATEGY IMPLEMENTATION FOR MULTINATIONAL COMPANIES: HUMAN RESOURCE MANAGEMENT

377

(114)

International Human Resource Management

378

(44)

International Human Resource Management Defined

379

(3)

International Human Resource Management and International Employees

380

(2)

Multinational Managers: The Expatriate or the Host-Country Manager

382

(4)

Is the Expatriate Worth It?

383

(3)

International Cadre: Another Choice

386

(1)

The Expatriate Manager

386

(14)

Selecting Expatriate Managers

387

(4)

Training And Development

391

(2)

Performance Appraisal for the Expatriate

393

(2)

Expatriate Compensation

395

(2)

The Repatriation Problem

397

(3)

International Assignments for Women

400

(4)

Successful Women Expatriates

401

(1)

Foreign, Not Female

401

(2)

More Women in the Future?

403

(1)

What Can Companies Do to Ensure Female Expatriate Success?

403

(1)

Multinationals and Electronic Human Resource Management

404

(3)

Strategic Importance of e.Hr

404

(2)

Proper Steps to e.Hr Implementation

406

(1)

Multinational Strategy and IHRM

407

(7)

IHRM Orientations

407

(5)

Finding a Fit: IHRM Orientation and Multinational Strategy

412

(2)

Summary and Conclusions

414

(1)

Discussion Questions

414

(1)

Multinational Management Skill Builder: A Presentation

415

(1)

Endnotes

415

(2)

Chapter Case: The Road to Hell

417

(5)

HRM in the Local Context: Knowing When and How to ADAPT

422

(69)

Why Do Nations Differ in HRM?

423

(4)

Recruitment

427

(5)

Recruitment in the United States

428

(1)

Recruitment in Korea

428

(1)

Recruitment around the World

429

(3)

Selection

432

(3)

Selection in the United States

432

(1)

Selection in Collectivist Cultures

433

(1)

Selection around the World

434

(1)

Implications for the Multinational: Recruitment and Selection

435

(1)

Training and Development

435

(10)

Training and Development in the United States

437

(1)

Training and Vocational Education in Germany

438

(3)

Management Development in the United States

441

(1)

Management Development in Japan

441

(4)

Implications for the Multinational: Training and Development

445

(2)

Performance Appraisal

447

(3)

Performance Appraisal in the United States

447

(1)

Performance Appraisals around the World

448

(2)

Compensation

450

(4)

Compensation Practices in the United States

450

(1)

Compensation around the World

451

(2)

Compensation in Japan

453

(1)

Implications for the Multinational: Performance Evaluation and Compensation

454

(2)

A Comparative View of Labor Relations

456

(6)

Union-Membership Density

457

(1)

Some Historical and Institutional Differences

457

(2)

Union Structures

459

(1)

Implications for the Multinational: The Search for Harmony

460

(2)

Summary and Conclusions

462

(1)

Discussion Questions

463

(1)

Multinational Management Skill Builder: The HRM Component in a Multinational Company's Location Decision

464

(1)

Endnotes

465

(2)

Chapter Case: Management Appraisal at Attock Refinery Limited (A)

467

(8)

Chapter Case: Management Appraisal at Attock Refinery Limited (B)

475

(8)

Integrating Case: Cadet Uniform Services: Cleaning Up in the Cleaning Business

483

(8)

Part 5 STRATEGY IMPLEMENTATION FOR MULTINATIONAL COMPANIES: INTERACTION PROCESSES

491

(134)

International Negotiation and Cross-Cultural Communication

492

(38)

The Basics of Cross-Cultural Communication

494

(10)

Language and Culture

494

(1)

High- and Low-Context Languages

494

(2)

Basic Communication Styles

496

(1)

Nonverbal Communication

497

(4)

Practical Issues in Cross-Cultural Business Communication

501

(3)

International Negotiation

504

(17)

Steps in International Negotiations

504

(12)

Basic Negotiating Strategies

516

(3)

The Successful International Negotiator: Personal Characteristics

519

(1)

Steps in, and Styles of, Negotiation, and the Successful Negotiator: Summary Observations

520

(1)

Summary and Conclusions

521

(1)

Discussion Questions

521

(1)

Multinational Management Skill Builder: Negotiating an International Contract-- a Simulation

521

(2)

Endnotes

523

(1)

Chapter Case: The AT&T/BT Joint Venture Negotiations

524

(6)

Motivation in Multinational Companies

530

(40)

Work Values and the Meaning of Work

531

(6)

Why Do People Work?

531

(1)

What Do People Value in Work?

532

(5)

Work Motivation and the National Context

537

(3)

The Basic Work-Motivation Process

537

(1)

National Context and Work Motivation: A Brief Introduction

538

(2)

Theories of Work Motivation in the Multinational Context

540

(19)

Need Theories of Motivation

540

(2)

Needs and the National Context

542

(4)

Process and Reinforcement Theories of Motivation

546

(9)

Motivation and Job Design: U.S. and European Perspectives

555

(4)

Summary and Conclusions

559

(1)

Discussion Questions

559

(1)

Multinational Management Skill Builder: Planning Motivational Strategies for Different Countries

560

(1)

Endnotes

561

(1)

Chapter Case: Chiba International, Inc.

562

(8)

Leadership and Management Behavior in Multinational Companies

570

(55)

Global Leadership: The New Breed

572

(1)

Three Classic Models: A Vocabulary of Leadership

573

(6)

Leadership Traits

573

(1)

Leadership Behaviors

574

(2)

Contingency Theories

576

(2)

Traits, Behaviors, and Contingencies

578

(1)

National Context as a Contingency for Leadership Behaviors

579

(12)

The National-Context Contingency Model of Leadership: An Overview

579

(3)

Leadership Traits and Behaviours in the National Context

582

(7)

National Context and Preferred Leader-Influence Tactics

589

(1)

National Context and Subordinates' Expectations

589

(2)

Contemporary Leadership Perspectives: Multinational Implications

591

(5)

Transformational Leadership

591

(4)

Attributions and Leadership

595

(1)

Global Women Leaders: The Future?

596

(2)

Getting Results: Should You Do What Works at Home?

598

(3)

The Cultural Context and Suggested Leadership Styles

599

(2)

Summary and Conclusions

601

(1)

Discussion Questions

601

(1)

Multinational Management Skill Builder: Leadership Challenges in Mexico

602

(1)

Endnotes

602

(2)

Chapter Case: Grupo UNIKO

604

(9)

Integrating Case: Argentina Suites: a Case Study

613

(12)

Part 6 THE ETHICAL CONTEXT OF MULTINATIONAL MANAGEMENT

625

(46)

Managing Ethical and Social Responsibility Challenges in Multinational Companies

626

(45)

What Are International Business Ethics and Social Responsibility?

627

(4)

Ethical Philosophy

631

(2)

Traditional Views

631

(1)

Moral Languages

632

(1)

National Differences in Business Ethics and Social Responsibility

633

(8)

Questionable Payments and the U.S. Foreign Corrupt Practices Act

637

(4)

Toward Transnational Ethics

641

(6)

Pressures for Ethical Convergence

641

(2)

Prescriptive Ethics for the Multinational

643

(4)

The Ethical Dilemma in Multinational Management: How Will You Decide?

647

(5)

Ethical Relativism versus Ethical Universalism

647

(2)

Individual Ethical Decision Making for the Multinational Manager

649

(3)

Summary and Conclusions

652

(1)

Discussion Questions

653

(1)

Multinational Management Skill Builder: Rex Lewis's Ethical Dilemma

653

(1)

Endnotes

654

(1)

Chapter Case: Tee-Shirts and Tears: Third World Suppliers to First World Markets

655

(16)

Glossary

671

(10)

Name Index

681

(2)

Subject Index

683

(12)

Company Index

695

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Multinational Management A Strategic Approach

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Table of Contents

Supplemental Materials