Relating International Management Capability and Strategic Coherence. As proposed above, the most critical managerial task is structuring the relationships between MNE headquarters and subsidiaries. However, the dominant theoretical
approach to this task has been architectural (searching for the “right” structure), rather than managerial. Bartlett and Ghoshal (1987) note that business environmental volatility has forced companies to simultaneously optimize operational
efficiency, responsiveness, learning, and competitiveness. To change successfully from one-dimensional to multi-dimensional managerial capabilities, and achieve global efficiency and integration, MNEs require management that
allows the organization to transfer core competencies across physical locations.