Document Type

Article

Publication Date

2008

Publication Source

Journal of International Business Studies

Abstract

The effective and efficient management of diversified business firms that supply multiple products and operate in multiple, dynamic markets, especially large multinational enterprises (MNEs), builds upon a number of specific governance principles. These governance principles allow the alignment of environmental characteristics, strategy and organization. Given the rising need to “learn from the world”, Doz et al., in their influential Harvard Business School Press book entitled From Global to Metanational, have proposed a new set of governance principles described under the “metanational” umbrella concept. This paper revisits the metanational, using a comparative institutional perspective; here we contrast multidivisional and metanational governance principles. A comparative institutional analysis suggests that the metanational's application potential in terms of actually improving the effectiveness and efficiency of MNE governance may be subject to more qualification than suggested by Doz et al. Senior MNE management must therefore reflect carefully before substituting metanational governance principles for the more conventional, multidivisional ones with established contributions to managerial effectiveness and efficiency.

Inclusive pages

940-956

ISBN/ISSN

0047-2506

Document Version

Postprint

Comments

This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version Verbeke, A. and Kenworthy, T. (2008), Multidivisional vs metanational governance of the multinational enterprise. Journal of International Business Studies, 39(6):940-956 is available online.

Publisher

Palgrave Macmillan

Volume

39

Issue

6

Peer Reviewed

yes