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By Julian Birkinshaw

`A significant contribution of this intriguing e-book is the point of view of the subsidiary supervisor working network... In its severe model which means all managers are subsidiary managers… hard those that nonetheless view multinationals as hierarchies. With extraordinary readability of suggestion and writing, Julian Birkinshaw stakes out the floor as an immense new philosopher of the fields of foreign company and strategic administration ' - Alan Rugman, Templeton collage, collage of Oxford a lot present literature on globalization and pageant specializes in the exterior setting during which organizations function. Julian Birkinshaw's booklet appears inside foreign companies on the dynamics that have an effect on their development and place. Are

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Additional info for Entrepreneurship in the Global Firm: Enterprise and Renewal (SAGE Strategy series)

Sample text

This is often a function of the subsidiary’s existing capabilities, but it can also be achieved through strong personal relationships. As described by one subsidiary manager: It is awfully important that we have a close association [with the US management]. We are talking frequently about what are the issues in their business, what are their problems, what are the opportunities that we can offer to help them solve their problems. That is important to do. The other facilitator, which will be discussed in some detail in Chapter 3, is a global orientation (Perlmutter, 1969) among the senior management of the parent firm.

This project had a top-driven global logic that was perceived to be addressing customer needs, but the way that it eventually transpired was a function of the specific agendas of a number of different subsidiary units. Thus the involvement of the Canadian unit could be seen as a hybrid initiative on its part, but it could also be seen in terms of the overall parameters of the project. Interestingly, subsidiary initiative (in the case of the Canadian unit, for example) can be seen as both a good and a bad thing in such projects.

The key issue for HQ managers in MNCs is to understand how to encourage subsidiary initiative without giving up control of their subsidiaries. This chapter points to the different systems that are needed to promote the different types of initiative. Future chapters (Chapter 9 in particular) address some of the broader questions about how to achieve this balance. 3 Fighting the Corporate Immune System: How the Initiative Process Works The purpose of this chapter is to immerse the reader in the initiative process, that is, the sequence of events through which new products or ideas ‘bubble up’ from the lower levels of the MNC.

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