An Empirical Analysis of the Integration-Responsiveness Framework: U.S. Construction Equipment Industry Firms in Global
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Prahalad[1975]and Doz [1976]providedone of the firstconceptualizations for examining global strategy.Their framework, termed the integrationresponsivenessframework,suggests that participantsin global industries develop competitivepostures across two dimensions.The first dimension, integration, refers to the coordination of activities across countries in an attemptto buildefficientoperationsnetworksand take maximumadvantage of similaritiesacrosslocations.The seconddimension,responsiveness,refersto the attemptto respondto specificneeds within a varietyof host countries. Businesses can choose to emphasize one dimension over another or to compete on both dimensions.The resultingdistributiondefines three basic strategies:integrated,multifocaland local responsiveness. The purposesof this studyare to verifythe utilityof the Prahaladand Doz [1987]classificationforunderstandinghow businessescompeteinternationally withina "singleglobal industry"(the U.S. constructionequipmentindustry) and to verify the competitiveattributesemphasizedin each of the strategy dimensions.Studiesby Hout, Porterand Rudden[1982],Prahaladand Doz *Julius H. Johnson, Jr. is Assistant Professor of Management at the University of MissouriSaint Louis. He earned his Ph.D. at The George Washington University. His current research interests focus on the content of international strategy and the strategic management of multinational corporations. The author wishes to thank Hugh O'Neill, Kendall Roth, Fariborz Ghadar, Jeffrey Lenn, Kathyrn Newcomer, Peter Vaill, Rodney Eldridge, Susan Tolchin, Philip Grub, Mark Starik, Steve Wartick, Charles Kuehl, George Yip, Steve Kobrin, and three anonymous reviewersfor the Journal of InternationalBusiness Studies for their helpful comments. Received: August 1993; Revised; April, September and December 1994; Accepted: January 1995.
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JOURNAL OF INTERNATIONALBUSINESSSTUDIES,THIRD QUARTER1995
[1987],and Hameland Prahalad[1989]haveidentifiedthe U.S. construction equipmentindustryas partof a globalindustry.Anotherpurposeof thisstudy is to extendthe examinationof the I-R frameworkundertakenby Roth and Morrison[1990]. CONCEPTUAL DEVELOPMENT
It is assumedin this studythatindustrydifferencesinfluencebusinessstrategy [Galbraithand Kazanjian1986;Prahaladand Bettis 1985].For example,in internationalcontexts,Habib and Victor [1991]found that the relationships between performanceand strategy-structurefits for multinationalcorporations varied across industries.These authors suggestedthat international strategiesbe investigatedat the industrylevel. Thus, while other researchers [Bartlett1985;Rothand Morrison1990;MartinezandJarillo1991]haveused the I-R frameworkto examinedifferencesin the benefitsof integrationand responsivenesspooling multipleindustries,the work presentedhere extends Roth and Morrison's[1990]work by providingan independenttest of their propositions rela
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