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The Management of International Business Read chapter Read first chapter

2019 | OriginalPaper | Chapter

8. Organization of Multinational Operations

Authors : Kamal Fatehi, Jeongho Choi

Published in: International Business Management

Publisher: Springer International Publishing

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Abstract

In this chapter, we present the various organizational structures of MNCs, and we will learn about the many factors that influence an MNC’s selection of the proper organizational structure. Some of these factors are external forces and demands, such as economic conditions at home and abroad, host government policies, product-market characteristics, and information technology. Factors related to the firm itself are the history of the company, top management philosophy, nationality, corporate strategy, and degree of internationalization. We first discuss the development of an organizational structure designed to deal with the export of products to foreign markets. The subsequent major structural designs for MNCs, including the autonomous foreign subsidiary, the international division, the geographic and product divisions, and the matrix structure, are explained in this chapter. Finally, we describe the newer forms of organization, such as market-based and strategic business unit organizations, virtual corporations, and networks.

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previous chapter International Strategic Alliance
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Metadata
Title
Organization of Multinational Operations
Authors
Kamal Fatehi
Jeongho Choi
Copyright Year
2019
Publisher
Springer International Publishing
Book
International Business Management

Print ISBN: 978-3-319-96621-2

Electronic ISBN: 978-3-319-96622-9

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-3-319-96622-9_8