Alignment of strategy and structure in international firms: an empirical examination

Citation

Grogaard, B. (2012), "Alignment of strategy and structure in international firms: an empirical examination", Strategic Direction, Vol. 28 No. 8. https://doi.org/10.1108/sd.2012.05628haa.004

Alignment of strategy and structure in international firms: an empirical examination

Article Type: Abstracts From: Strategic Direction, Volume 28, Issue 8

Grøgaard B.International Business Review, June 2012, Vol. 21 No. 3, Start page: 397, No. of pages: 11

It is increasingly recognized that many multinationals face dual global and local pressures. Foreign subsidiaries are thus expected to exhibit different needs in terms of their internal integration or responsiveness to local needs. This study examines the internal alignment of strategy and structure in multinationals when such dual pressures are recognized. The findings show a lower than expected level of internal strategy/structure alignment. A number of post hoc interviews suggest that contrary to the discussion of differences across foreign subsidiaries’ external environments, dual global and local pressures are frequently experienced within the same foreign subsidiary. The balancing act of aligning strategy and structure in MNCs is thus more complex than existing theoretical frameworks predict. Multinationals may choose to prioritize selective structural characteristics to achieve sufficient levels of both integration and responsiveness.Article type: Research PaperISSN: 0969-5931Reference: 41AH158

Keywords: Alignment, International strategy, Multinationals, Structure