The Differentiated Network: Organizing Multinational Corporations for Value Creation / Edition 1

The Differentiated Network: Organizing Multinational Corporations for Value Creation / Edition 1

by Nitin Nohria, Sumantra Ghoshal
     
 

ISBN-10: 0787903310

ISBN-13: 9780787903312

Pub. Date: 02/19/1997

Publisher: Wiley

In a dynamic global economy, multinational corporations (MNCs) face certain competitive challenges that traditional, hierarchical "hub and spoke" organizations simply aren't geared to meet. But in this landmark work, authors Nitin Nohria and Sumantra Ghoshal present a viable alternative — the differentiated network. Writing for managers seeking changes in

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Overview

In a dynamic global economy, multinational corporations (MNCs) face certain competitive challenges that traditional, hierarchical "hub and spoke" organizations simply aren't geared to meet. But in this landmark work, authors Nitin Nohria and Sumantra Ghoshal present a viable alternative — the differentiated network. Writing for managers seeking changes in their administrative systems that boost firm performance, and for academics engaged in research organization design, the authors detail how the competitive MNC can fully tap the value creation potential of its globally distributed capabilities. The authors build on their premise that the units of an MNC should be organized as a differentiated network in order to optimize use of resources, encourage knowledge exchange and development, and increase innovation. By systematically grounding this core concept in organization theory and rigorously testing its validity using large sample data, they are able to offer practical application strategies. Nohria and Ghoshal draw on in-depth case studies of the organization, structures, systems, and management practices in nine large MNCs, and show why overall subsidiary performance is positively correlated with a high degree of internal differentiation and high levels of shared values across the subsidiaries. The nature and functioning of linkages within each national subsidiary, between headquarters and subsidiary, and among the subsidiaries themselves in explored in detail, as the importance of integrative mechanisms.The pioneering nature of their detailed research into the implications of organization theory allows Nohria and Ghoshal to draw the most reliable and robust real-world conclusions about the differentiated network ever available. As such, the organizational model they present in The Differentiated Network can be used by any multinational corporation seeking competitive advantage in the worldwide marketplace...today and well into the foreseeable future

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Product Details

ISBN-13:
9780787903312
Publisher:
Wiley
Publication date:
02/19/1997
Series:
Jossey-Bass Business and Management Series
Pages:
253
Sales rank:
1,163,350
Product dimensions:
6.34(w) x 9.65(h) x 1.00(d)

Table of Contents

Preface.

The Differentiated Network.

DISTRIBUTED INNOVATION IN THE DIFFERENTIATED NETWORK.

Distributed Innovation in Multinational Corporations (MNCs).

Optimal Slack for Distributed Innovation.

Creation, Adoption, and Diffusion of Innovations Across the MNC.

DIFFERENTIATION AND INTEGRATION.

Internal Differentiation Within the MNC.

Formal Structure and Shared Values.

Integration Through Interunit Communication.

Integration Through Interpersonal Networks.

LIMITS AND EXTENSIONS OF THE DIFFERENTIATED NETWORK.

Requisite Complexity.

Beyond the Differentiated Network.

Methodological Appendix.

References.

The Author.

Index.

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