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Effectively conceiving and executing multinational's worldwide strategies

Author: Kim, W. Chan ; Mauborgne, RenéeINSEAD Area: StrategyIn: Journal of International Business Studies, vol. 24, no. 3, 1993 Language: EnglishDescription: p.419-448.Type of document: INSEAD ArticleNote: Please ask the Library for this articleAbstract: This study addresses one of the most compelling questions in the field of international management: how can a multinational simultaneously pursue the double-ended objective of effectively conceiving its worldwide strategy? Here the authors examine the ways in which the dynamics of the strategy making process between head office and subsidiary units influence the multinational's ability to achieve these two objectives. Specifically the authors introduce the concept of procedural justice, whose intellectual root is grounded on two academic disciplines of social psychology and law, into international management and explore the impact of process fairness on the multinational's ability to conceive and execute effective worldwide strategies. The results of this research are based on a two-phase longitudinal study of the decision making dynamics of 19 multinationals. They provide support that the exercise of procedural justice is indeed a powerful way to organize the multinational's strategy making process
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This study addresses one of the most compelling questions in the field of international management: how can a multinational simultaneously pursue the double-ended objective of effectively conceiving its worldwide strategy? Here the authors examine the ways in which the dynamics of the strategy making process between head office and subsidiary units influence the multinational's ability to achieve these two objectives. Specifically the authors introduce the concept of procedural justice, whose intellectual root is grounded on two academic disciplines of social psychology and law, into international management and explore the impact of process fairness on the multinational's ability to conceive and execute effective worldwide strategies. The results of this research are based on a two-phase longitudinal study of the decision making dynamics of 19 multinationals. They provide support that the exercise of procedural justice is indeed a powerful way to organize the multinational's strategy making process

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