Global integration versus local adaptation: a case study of Austrian MNCs in Eastern Europe Online publication date: Tue, 31-Aug-2010
by Stephan Berchtold, Richard Pircher, Christian Stadler
European J. of International Management (EJIM), Vol. 4, No. 5, 2010
Abstract: Institutionalists argue that the successful transfer of knowledge depends on a firm's ability to adapt to its local environments. Jensen and Szulanski (2004) take a different perspective, focusing on global integration. While both approaches have received considerable attention their relationship has been less discussed. Using an extended case study method exploring 15 Austrian MNCs, we propose that there are two models to explain the relationship. One model puts local adaptation and global integration at two ends of a continuum. According to this interpretation there is a trade-off between the two. A second model sees local adaptation and global integration in an orthogonal relationship. They do not exclude each other but can be achieved at the same time by emphasising different aspects of an organisational practice. The Austrian MNCs we explore have a tendency towards the second model. They combine strong personal relationships with standardisation of products and processes, using training as a link between them.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of International Management (EJIM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook