Birkinshaw (1993) hypothesizes that within MNEs, decision-making is co-located with assets and capabilities. While it is possible to control the MNE from a single centre, such a strategy would not maximize effectiveness, and might lower the
morale of subsidiary managers (Morrison and Roth 1993). The preferred alternative, placing strategic authority at the location of resources, results in enhanced entrepreneurial behaviour.
Birkinshaw and Morrison (1995) support the view that resources, managerial capabilities and decision-making, increasingly dispersed throughout the organization, require activities to be co-ordinated along multiple dimensions.
Hence, MNEs’ need to cohere dispersed assets and capabilities leads to the fifth hypothesis:
Birkinshaw (1993) hypothesizes that within MNEs, decision-making is co-located with assets and capabilities. While it is possible to control the MNE from a single centre, such a strategy would not maximize effectiveness, and might lower themorale of subsidiary managers (Morrison and Roth 1993). The preferred alternative, placing strategic authority at the location of resources, results in enhanced entrepreneurial behaviour.Birkinshaw and Morrison (1995) support the view that resources, managerial capabilities and decision-making, increasingly dispersed throughout the organization, require activities to be co-ordinated along multiple dimensions.Hence, MNEs’ need to cohere dispersed assets and capabilities leads to the fifth hypothesis:
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