Reading: The Multinational Corporation as an Interorganizational Network

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The Multinational Corporation as an Interorganizational Network

Authors

Ghoshal, Sumantra; Bartlett, Christopher A.

Summary

A multinational corporation (MNC) consists of a group of geographically dispersed and goal-disparate organizations that include its headquarters and the different national subsidiaries. Such an entity can be conceptualized as an interorganizational network that is embedded in an external network consisting of all other organizations, such as customers, suppliers, and regulators, with which the different units of the multinational must interact. Based on such a conceptualization, a model is developed of the MNC as an internally differentiated interorganizational network. Hypotheses are proposed that relate certain attributes of the MNC, such as resource configuration and internal distribution of power, to certain structural properties of its external network."

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Citation

Ghoshal, Sumantra; Bartlett, Christopher A., The Multinational Corporation as an Interorganizational Network, The Academy of Management Review; Oct 1990.