Organization Theory and the Multinational Corporation
Despite a shared interest in the analysis of complex organizations operating in complex environments, macro-organization theory and research on the multinational corporation have developed quite independently of each other. This book, the product of a col
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Organization Theory and the Multinational Corporation Edited by
Sumantra Ghoshal Associate Professor and Digital Equipmellf Corporation Research Fellow at INSEAD, Fontainebleau, France
and
D. Eleanor Westney Associate Professor of Management at Sloan School of Management Cambridge, Massachusetts, USA
M
St. Martin's Press
Selection, editorial matter and introduction © Sumantra Ghoshal and D. Eleanor Westney 1993 Chapter 2 © Yves Doz and C. K. Prahalad 1993; Chapter 3 © D. Eleanor Westney 1993; Chapter 4 © Sumantra Ghoshal and Christopher Bartlett 1993; Chapter 5 ©Jacques Delacroix 1993; Chapter 6 ©Bruce Kogut 1993; Chapter 7 © Jean-Fran~ois Hennart 1993; Chapter 8 ©William Egelhoff 1993; Chapter 9 ©Gunnar Hedlund 1993; Chapter 10 © W. Chan Kim and Renee Mauborgne 1993; Chapter II ©Martin Kilduff 1993; Chapter 12 ©John VanMaanen and Andre Laurent 1993 Softcover reprint of the hardcover 1st edition 1993 978-0-333-54622-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WI P 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published in Great Britain 1993 by THE MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world A catalogue record for this book is available from the British Library. ISBN 978-1-349-22559-0 ISBN 978-1-349-22557-6 (eBook) DOI 10.1007/978-1-349-22557-6 Reprinted 1993 First published in the United States of America 1993 by Scholarly and Reference Division, ST. MARTIN'S PRESS, INC., 175 Fifth Avenue, New York, N.Y. 10010 Library of Congress Cataloging-in-Publication Data Organization theory and the multinational corporation/edited by Sumantra Ghoshal and D. Eleanor Westney. p. em. Includes index. I. International business enterprises-Management. 2. Organization. 3. Organizational behavior. 4. Corporate culture. I. Ghoshal, Sumantra. II. Westney, D. Eleanor. HD62.4.074 1993 338.8'8-dc20 91-47612 CIP
Contents List of Tables and Figures
Vll
Acknowledgements
Vlll
Notes on the Contributors
X
Introduction and Overview Sumantra Ghoshal and D. Eleanor Westney 2 Managing DMNCs: A Search for a New Paradigm Yves Doz and C. K. Prahalad Part I
Environment and Organization-Environment Interactions
24
51
3 Institutionalization Theory and the Multinational Corporation D. Eleanor Westney
53
4 The Multinational Corporation as an Interorganizational Network Sumantra Ghoshal and Christopher Bartlett
77
5 The European Subsidiaries of American Multinationals: An Exercise in Ecological Analysis Jacques Delacroix 6
Learning, or the Importance of be