Article: Global integration versus local adaptation: a case study of Austrian MNCs in Eastern Europe Journal: European Journal of International Management (EJIM) 2010 Vol.4 No.5 pp.524 - 549 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. Inderscience Publishers - linking academia, business and industry through research

Title: Global integration versus local adaptation: a case study of Austrian MNCs in Eastern Europe

Authors: Stephan Berchtold, Richard Pircher, Christian Stadler

Addresses: choices management consulting, Pyrkergasse 12/6, A-1190 Vienna, Austria. ' University of Applied Sciences bfi Vienna, Wohlmutstrasse 22, A-1020 Vienna, Austria. ' University of Bath School of Management, Bath BA2 7AY, UK

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.

Keywords: knowledge transfer; institutional theory; Eastern Europe; global integration; local adaptation; globalisation; Austria; multinational corporations; MNCs; local environments; Gabriel Szulanski; Robert Jensen; trade-offs; orthogonal relationships; organisational practices; personal relationships; product standardisation; standard processes; training; international management.

DOI: 10.1504/EJIM.2010.034965

European Journal of International Management, 2010 Vol.4 No.5, pp.524 - 549

Published online: 31 Aug 2010 *

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Title: Global integration versus local adaptation: a case study of Austrian MNCs in Eastern Europe

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