Multinational Management A Strategic Approach

by Cullen, John B.

• ISBN13: 9780324259902
• ISBN10: 0324259905
• Edition: 3rd
• Format: Hardcover
• Copyright: 2004-02-19
• Publisher: South-Western College Pub

Summary

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.

Table of Contents

Preface	xiv
About the Authors	xx
Part 1 FOUNDATIONS OF MULTINATIONAL MANAGEMENT	1	(122)
Multinational Management in a Changing World	2	(40)
The Nature of the Multinational Company	4	(2)
The Globalizing Economy: A Changing (But Not Always Stable) Environment for Business	6	(19)
Countries of the World: The Arrived, the Coming, and the Struggling	6	(1)
Borders Are Disintegrating: The World Trade Organization and Free Trade Areas	7	(3)
Sell Anywhere, Locate Anywhere: Trade and Foreign Investment Are Growing But Setbacks Are Part of the Challenge	10	(7)
The Internet and Information Technology Are Making It All Easier	17	(3)
The Rise of Global Products and Global Customers	20	(2)
The State Is Getting Out of Business	22	(1)
New Competitors Are Emerging	23	(1)
The Rise of Global Standards	23	(2)
The Next Generation of Multinational Managers	25	(2)
Multinational Management: A Strategic Approach	27	(1)
Summary and Conclusions	28	(1)
Discussion Questions	28	(1)
Multinational Management Skill Builder: Interview a Multinational Manager	29	(1)
Endnotes	29	(1)
Chapter Case: ABB in China: 1998	30	(12)
Culture and Multinational Management	42	(36)
What Is Culture?	43	(2)
Levels of Culture	45	(1)
National Culture	46	(1)
Business Culture	47	(1)
Occupational Culture and Organizational Culture	47	(3)
Cultural Differences and Basic Values: Two Diagnostic Models to Aid the Multinational Manager	50	(20)
Hofstede's Model of National Cuture	50	(2)
Uncertainty Avoidance	52	(9)
7d Cultural Dimensions Model	61	(9)
Propensity to Trust: A Cultural Dimension of Increasing Importance	70	(1)
Caveats and Cautions	71	(2)
Summary and Conclusions	73	(1)
Discussion Questions	74	(1)
Multinational Management Skill Builder: A Briefing Paper	74	(1)
Endnotes	75	(1)
Chapter Case: Old Corporate Ways Fade as New Korean Generation Asserts Itself	76	(2)
The Institutional Context of Multinational Management	78	(45)
Social Institutions and Influence of Society	81	(2)
Economic Systems	83	(6)
Industrialization	89	(4)
Religion	93	(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