Relating Dispersed Functionality and Strategic Coherence.
MNEs face three major challenges in managing the dispersion of responsibilities and differentiating subsidiaries’ tasks. The first is setting the strategic direction by accurately identifying business objectives. The second is building the differentiated organization by designing diverse roles, distributing assignments appropriately, and giving managers the required responsibilities, legitimacy, and power. The third is to continuously manage relationships and processes, to ensure multiple roles and distributed responsibilities are co-ordinated and controlled coherently.