Industries vary in their globalization potential because of underlying structural characteristics and conditions. The presence of certain market, cost, government, and competitive drivers in an industry favors certain types of strategies over others and therefore influences what strategies managers choose to pursue (Yip 2003). An increased globalization potential due to favorable globalization drivers would mean that additional benefits could be realized from a globally integrated strategy than would be possible otherwise. Similarly, we also expect that industry globalization conditions influence how the organization is able to configure its operations across national borders (Yip 2003). For example, when local idiosyncrasies exist in the global marketplace or when rules and regulations vary widely, managers at the GMO headquarters will yield more of the decision-making power than will local managers. Conversely, when the industry exhibits a higher globalization potential through uniform market characteristics, additional synergies can be realized through centralized control mechanisms. Thus: