Balancing a simultaneous need

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Balancing a simultaneous need

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Title: Balancing a simultaneous need
How can managers successfully solve the challenge of balancing the simultaneous need for integration and coordination within a multinational corporation competing in hypercompetitive markets?
Author: Ólafsson, Sævar
Abstract: In the hypercompetitive environment described in the thesis, consumers expect and demand more; competitors aggressively introduce new products, change distribution channels, implement costcutting programs, and imitate each other’s innovations. As the world has become more competitive and volatile, companies experience in industry after industry has shown that neither market positions nor traditional sources of competitive advantage can anymore guarantee long-term success. In this mercurial environment, attention is converging on knowledge as a critical source of comparative economic advantage. The new strategies, in turn, have raised questions about the adequacy of organizational structures and control processes used to manage worldwide operations. In the earlier parts of the thesis I provide the reader with the introduction and research consideration and move to another part containing a sound theoretical background for my following empirical analysis. I try to indicate first my point of view on different theories, giving the reader basic, however sufficient background concerning hypercompetition, exploration, exploitation and control processes. Next i move to a following part describing an ambidextrous and transnational structures. With the inspection of the empirical research i was successfully able to relate the business cases of IO Interactive, Microsoft Denmark and Velux A/S to the theoretical framework. The study provides empirical evidence that the manner which multinational corporations choose to organize themselves with regards to organizational structure and control processes does not have to be homogeneous. Whether the difference lies in the level of centralization, decentralization, exploration or exploitation is irrelevant – What is significant in hypercompetitive markets is that multinational corporations can sense and respond to multiple changing environmental demands and make selective decisions. As a result, in order to successfully solve the challenge of balancing the simultaneous need for integration and coordination within a multinational corporation competing in hypercompetitive markets, managers have to be able to implement what I define as an organic and loosely administered structure. In this context, managers are able to stimulate the creation, collection and the sharing of the exploitive and exploratory knowledge simultaneously, overcoming most of the disadvantages of centralization and decentralization. This requires a highly creative and communicative working environment lead by qualified and diverse employees who share a set of common values. The ability of being flexible while maintaining some consistency and reliability seems to be the key to meeting the challenges of the future.
URI: http://hdl.handle.net/10417/927
Date: 2010-04-16
Pages: 100 s.
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