Global organizations challenges, opportunities, and the future

  ADVANCED PRAISE FOR GLOBAL ORGANIZATIONS “Bhagat, McDevitt, and Baliga have undertaken a monumental task with this volume addressing the diverse and complex challenges and opportunities that confront companies and more general organizations as they confront the globalization demands of the 21st century What I found especially effective is the unique interdisciplinary perspectives that frame the discourse and the dynamics that companies must address as they increasingly cross national and collective boundaries for the conduct of their operations.” —​​A rie Y Lewin, Editor-in-Chief, Management and Organization Review “This is an extremely timely book The issue of how economic, cultural, and political forces together affect the growth and functioning of global organizations could not be more critical in today’s highly complex and dynamic business environments The book is a tour-de-force, covering a wide range of topics pertinent to global organizations which provide critical insights into organizations of the 21st century Combining vivid examples from many cultures with rigorous research, this book provides a comprehensive and accessible understanding of the complex issues   facing multinational and global organizations It is a must read for scientists and practitioners and all of us who want to understand the future of global organizations.” —​​Michele J Gelfand, Professor and Distinguished Scholar-Teacher, University of Maryland, College Park “Organizations operating in different geographical contexts in the world today are confronted with many challenges In addition to dealing with recent developments in the economic and political arena, they are required to implement the latest information technologies and continuously restructure the organization in order to fit their strategies to the evolving structure Bhagat, McDevitt, and Baliga provide a comprehensive approach to these issues in this book, which is a must read for global business scholars and practitioners in all parts of the world This book is also going to be very helpful to researchers, graduate students, and international executives wishing to gain a multi-​dimensional prospective on the functioning of global organizations.” —​​O ded Shenkar, Professor and Ford Motor Company Chair in International Business, Ohio State University “Over the years, two fundamental counteracting forces have shaped the nature of international business The same counteracting forces have been revisited by many authors in terms such as ‘standardization vs adaptation’ (1970s), ‘globalization vs localization’ (1980s), ‘global integration vs local responsiveness’ (1990s), and ‘aggregation vs adaptation (vs arbitrage)’ (2000s) Terms have changed, but the quintessence of the strategic dilemma that multinational companies face today has not changed and will probably remain unchanged for years to come These issues are no longer an either/​or issue Bhagat, McDevitt, and Baliga describe that forward-​looking, proactive firms have the ability and willingness to develop new organizational strategies to accomplish both   tasks simultaneously for the 21st century It is a welcome read for those executives and researchers interested in executing organizational transformation —​​M aasaki Kotabe, Washburn Chair Professor of International Business and Marketing, Temple University “Global Organizations addresses important issues affecting the functioning of global and multinational organizations in today’s complex and dynamic environments The book recognizes multiple factors in addition to the crucial influence of cultural differences on organizational functioning It provides critical insights for global organizations facing the difficult and complex issues involved in operating in diverse geographical and cultural environments The authors draw on their years of teaching, research, and consulting experience to address both theoretical and practical issues with a sense of breadth and depth.” —​​Nancy J. Adler, S. Bronfman Chair in Management, McGill University “In today’s world where globalization has been regularly questioned by politicians, business leaders and populations in general, Global Organizations makes the case that globalization is not only a crucial part of the business reality but also can be managed effectively, if organizational leaders understand the issues involved The authors demonstrate that global organizations provide a fertile ground in understanding how cultures, organizational practices, and global mindset would propel businesses to be not only competitive but also responsible citizens of the world.” —​​Huseyin Leblebici, Merle H. and Virginia Downs Boren Professor of Business Administration, College of Business, University of Illinois     Global Organizations     Global Organizations Challenges, Opportunities, and the Future R A B I S   B H A G AT ANNETTE S MCDEVITT B RAM BALIGA   Oxford University Press is a department of the University of Oxford It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America © Oxford University Press 2017 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer Library of Congress Cataloging-​in-​Publication Data Names: Bhagat, Rabi S., 1950–​author | McDevitt, Annette S. | Baliga, B. Ram Title: Global organizations : challenges, opportunities, and the future /​ Rabi S. Bhagat, Annette S. McDevitt, B. Ram Baliga Description: New York, NY : Oxford University Press, [2017] Identifiers: LCCN 2016038611 | ISBN 9780190241490 (jacketed hardcover : alk paper) Subjects: LCSH: International business enterprises—​Management. | Management—​Cross-​cultural studies | Organizational behavior—Cross-​cultural studies | International trade Classification: LCC HD62.4 B543 2017 | DDC 658/​3.049—​dc23 LC record available at https://​lccn.loc.gov/​2016038611 1 2 3 4 5 6 7 8 9 Printed by Sheridan Books, Inc., United States of America   To Professor Jagdish N. Sheth, Charles Kellstadt Professor of Marketing at Goizueta Business School of Emory University, and Jeffery Pfeffer, Thomas D. Dee Professor of Organizational Behavior at the Stanford Business School Rabi S. Bhagat To My husband, Ian McDevitt Annette S. McDevitt To Timo Santalainen, Strategy Sparring Partner, Finland B Ram Baliga   Index 300 Mischel, W., 217 Mitra, S., 147 Moon, H., 36 Morris, M.W., 227 Moskowitz, J.T., 248, 249 Mukerji, D., 151, 262 Mullin, R., 109 Murtha, T.P., 259 Myrdal, G., 3, 43, 242 Myers, C.A., 43, 279 Naisbitt, J., 146 Narasimham, S., 147 Nardon, L., 3, 30 Nathan, J., 251 Nelson, D.J., 193 Nelson, T.A., 193 Nguyen, T., 85 Nisbett, R.E., 195, 196, 197 Nishi, L.H., 216, 217 Nogami, G., 248 Nollen, S., 241 Nonaka, I., 151, 173, 174, 175, 177, 247 Norenzyan, A., 196 North, D.C., 84 Nummela, N., 259 Nystrom, P.C., 254 O’Malley, M., 193 O’Neill, J., 2, 44, 49 Ohmae, K., 286 Olsen, R.F., 150 Palepu, K.G., 74, 84 Patel, P., 151 Pavitt, K., 151 Pelto, P.J., 216, 217 Peng, J., 196, 197 Peng, M., 196, 197 Perenich, T., 259, 261, 262 Phatak, A.V., 168 Piasecki, M.T., 249 Picketty, T., 74 Poelmans, S., 251 Pogosh, R.M., 249 Polyani, M., 164, 174 Poortinga, Y.H., 193 Porter, M.E., 94, 107, 108, 151 Prahalad, C.K., 101, 104 Prusak, L., 247 Purushothaman, R., 44 Puumalainen, K., 259 Quick, J.C., 193 Quinn, J.B., 147 Quinn, R., 217 Raber, J.L., 216–​217 Rai, S., 110 Rangaswami, K., 146 Reisen de Pinho, R., 102 Robinson, J.A., 43, 70, 71, 223, 224 Rose, A., 262 Rosenzweig, E.D., 150 Roth, A.V., 150 Saarebjetim, S., 259 Saitta, J. A., 146 Sakkah, J., 110 Sam, D.L., 193 Sanches-​Runde, C.J., 3, 30 Sanchez-​Burks, J., 222, 224, 225 Sassan, S., 191 Schaeffer, R.K., 4, 36 Schmidt, R., 184 Schroeder, H.M., 248 Sea-​Jin, C., 175 Segovis, J.C., 193 Selmer, J., 262 Sen, A., 59 Shamus, G.S., 144 Sharma, R., 2, 69, 72, 78 Shenkar, O., 247 Sheth, J., 3, 59, 69, 244 Sieber, J.E., 249 Smick, D.M., 74 Smith, G., 111 Smith, P.B., 191   Index 301 Smith, S., 147 Snell, S.A., 182 Sole, D., 136 Sorensen, S.M., 144 Spritzer, G., 217 Sproull, L., 177 Srinivas, K.M., 262 Srivastava, R.K., 139 Stahl, G., 262 Stanko, T.L., 134, 136 Starbuck, W.H., 254 Steers, R.M., 3, 30 Steufert, S., 248, 249 Stewart, T.A., 164 Stiglitz, J.E., 45, 191, 274 Stopford, J.M., 122 Strodbeck, F.L., 201 Stubbart, C.T., 254 Swezey, R.W., 248, 249 Su, Y., 197 Suedfeld, P., 248 Szulanski, G., 179 Triandis, H.C., 152, 153, 166, 180, 193, 196, 211, 213, 216, 217, 218, 219, 246, 248, 249, 250, 251 Trott, P., 156 Takeuchi, H., 151, 173, 175, 177, 247 Tate W.L., 150 Taylor, N., 110 Taylor, S., 248 Teagarden, M., 260, 261 Teece, D.J., 247 Tenev, S., 241 Thomas, J.R., 254 Thorndike, E.L., 198 Torbiorn, J., 262 Townsend, N., 78 Yamakazi, M., 80 Yip, G.S., 93, 245 Youndt, M.A., 182 Youngdahl, W., 146 Yuki, M., 197 Uchida, Y., 218 Uskal, A.K., 196 Valunju, S., 147 Van Dyne, L., 200 Vermeulen, F., 256 Vernon, R., 145 Voss, C.A., 150 Wang, H., 90, 190, 236 Wei, S.J., 147 Weilbaker, D., 104 Wells, L.T., 122 Willcocks, L.P., 152, 153 Wilson, D., 44, 104 Woolridge, A., 74 Wu, J.R., 80 Zahra, S.A., 151 Zakaria, F., 3, 41, 45, 69, 190, 224, 244, 270, 276 Zaltman, G., 139 Zander, U., 174     SUBJECT INDEX ABB, 126, 177 Ab InBev, 78 Accenture, 78 Acer, 73, 96, 114, 152 Activities value-╉added, 146 Adaptability, 84 Administrative heritage, 80 culture and, 213 global mindset and, 244, 245 knowledge creation and, 169, 213 knowledge transfer and, 169 offshoring/╉outsourcing and, 152 structure and, 130, 132, 138 tacit knowledge and, 175 Africa, 2 Sub-╉Sahara, 18, 43, 223, 276 AGCO, 114 Airbus Consortium, 89 Alcoa, 7 Alibaba, 282 Altera, 86 Ambiguity, 79, 80, 83, 117 culture and, 213 globalization and, 190 American Express, 169 Anaconda Copper, 7 Antecedents organization-╉specific, 244–╉5 Apple, Inc., 2, 48, 49, 98, 111, 124, 169 Arab Spring, 208, 272 Arbitrage, 13, 112 Labor, 145, 155 ArcelorMittal, 95 Arianne, 93 ASEAN (Association of SE Asian Nations), 10, 11, 234, 236 ASUS, 96, 152 ATT, 93, 169 Australia, 2 Austria, 36 Authoritarianism and Russia, 91 Autonomy operational, 129, 130 subsidiary, 123 Barriers non-╉tariff, 87, 107 tariff, 87, 107 Bechtel, 171 Bharat Forge, 242 Birla Corp., 59 BMW, 2 Boeing, 49, 64, 89, 90, 106 Boon, Allen, & Hamilton, 162, 173 Born-╉global, 6, 277 Bosch, 156 Brand, 88 Brazil (See BRIC),2, 42, 60–╉62 economy of, 61 IMF and, 60 infrastructure and, 61 Break-╉out nations, 2, 69–╉70 Brexit, 67, 68, 284, 285   304 Bribery, 14, 73 BRIC Brazil, 60–​62 China, 50–​56 India, 56–​60 Russia, 62–​65 British Petroleum (BP), 91, 170 Buddhism, 40 CAFTA (Central American Free Trade Area), 11 CAGE framework, 12, 21, 92 Call centers, 58 Cambodia, 26 Canada, 14, 72, 223 Capacity cognitive, 212 Capital intellectual, 260 psychological, 260 social, 184 Capitalism, 22, 23 China and, 52–​3 Caterpillar, 2, 32, 170 Centers of excellence, 108 Chad, 222 Chaebol, 223 Chase Bank, 278 Chevron, 214 China (See BRIC),2, 17, 21, 39, 40, 41 population control and, 53 South China Sea, 28, 82 Chrysler, 49, 87, 94 Cisco Systems, 57, 134 Citibank, 169 Citicorp, 48, 192 Citigroup, 48 Cleveland Clinic, 183 CNN, 20 Coca-​Cola, 1, 20, 48 Cognition, 195, 219 Cognizant, 242 Cold War, 24 Collectivism (see Individualism-​ collecivism, Hofstede) Index Colonialism, 4 Communication computer-​mediated, 10, 135, 185 global platforms, 103 global teams, 274 non-​verbal, 17 Communism, 63 Competency cultural, 197, 198 interpersonal, 200 technological, 168 Complexity, 78, 79, 83, 117 cognitive, 213, 248, 249, 256 Configuration organic, 91 value chain, 105 Confucianism, 40 Continental, 156 Convergence consumer preferences, 81, 100 hypothesis, 279, 281 markets, 192 Coordination global, 106 Corporate social responsibility (CSR), 278, 279 Corruption, 14, 17, 73, 222, 287 Corus, 95, 117 Cosmopolitanism, 246, 256 Costco, 88 Cuba, 17, 71 Culture, 207, 284 classification of, 201, 202 convergence of, 32, 74 differences in, 190, 195, 196 frameworks of, 194, 201 Hofstede’s dimensions, 193 homogeneity, 74 norms, 195 organizational, 175 polite versus rude, 208 progress-​resistant, 223, 271 punctual versus patient, 210 relationship versus rules, 203, 208, 211 rule oriented, 203   Index shame versus guilt, 208 subjective, 195 values, 195 Currency common, 14 exchange rates, 6 volatility of, 79 Czech Republic, 63 Daesh (See ISIL/​ISIS) Danone, 6 Decision-​making judgmental, 213 particularisitic, 250 universalistic, 250 Deintegration, 89, 105 Dell, 73, 96, 114 Denmark, 223 Design (see Structure) organizational, 121 Deverticalization, 105, 108 firm, 87 industry, 87 DHL, 182, 206 Differences individual, 200 Digitalization, 86 Distance (See CAGE) administrative, 12, 15, 92, 262 cultural, 12, 15, 92, 262 economic, 12, 15, 92, 262 geographic, 12, 15, 92, 262 Economy centrally-​driven, 79 market-​driven, 79 Effectiveness intercultural, 198 Egypt, 222, 272 Elizabeth Arden, 52 Embraer Aeronautics, 37, 38, 61 Emerson, 155 Emirate Airlines, 89 Emotion culture and, 195, 221 305 work place and, 224 Empathy, 198, 209 Ericsson, 78, 92, 93, 245 Ethics, 278, 279 Ethnicity, 17 Expatriate, 134 Eurocard, 169 European Central Bank, 69 European Commission, 66 European Union (E.U.), 11, 37, 64, 65–​8, 254 nationalism and, 67 trading partners, 67 Exxon-​Mobil, 36, 93, 170, 214, FAA, 111 Factors of production, 8, 11 Fatalism, 271 Federal Express, 2, 182, 206, 241 Femininity (see Hofstede),205–​6 Flexibility cognitive, 199, 209 strategic, 84 Ford Motor Company, 87, 102, 114, 162, 165 Foreign Corrupt Practices Act, 14 Foreign direct investment (FDI), 14 Brazil, 61 China, 51, 54 India, 57, 83 Foxconn (Hon Hai), 80, 85 France, 2, 284 G-​ 7, 163 G-​8, 3, 38, 63, 72, 172 G-​20, 29, 1633, 172 Garnier, 102 GATT (General Agreement on Tariffs and Trade), 45, 107 Gazprom, 84 GDP Brazil, 60 China, 53 France, 60, 69 Germany, 66 global, 3   Index 306 GDP (Cont.) Russia, 62 UK, 39, 60 US, 39, 46 General Electric, 8, 51, 58, 94, 108–​9, 129, 136, 144, 146, 148, 149, 155, 169, 170, 245 General Motors (GM), 9, 49, 51, 61, 87, 162, 165, 192, 243, 245 Georgia, 208 Germany, 21, 42 Ghana, 2 Glaxo-​Wellcome, 169 Global accounts, 103–​4 Globalization ambiguities of, 190 challenges of, 18–​20 drivers of, 7, 11 economic, 35, 72 exclusion, 27 inclusion, 27 strategy, 81–​2, 92 VUCA, 80 Global Mindset Inventory, 260 Goodyear, 7 Greece, 21 Growth Brazil, 45 China, 45, 55 India, 45, 56, 82 Japan, 45 Russia, 45 South Korea, 45 GSK, 95 Guanxi, 225 Habits, 211, 214 Haier, 114, 115 Halliburton, 172 Henkel, 113, 114, 115 Hewlett-​Packard (HP), 73, 96, 97, 103, 114, 134 HH Greg, 88 Hindusthan Unilever, 100, 113, 115 Hofstede (dimensions of culture) individualism-​collectivism, 203, 218 power distance, 204 masculinity-​femininity, 205 uncertainty avoidance, 205 Homogeneity of culture, 277, 278 Honda, 165 HTC, 93, 96 Huawei, 78 Hungary, 63, 64, 284 Hutchison Essar, 83 Hyundai, 165 IBM, 2, 51, 57, 73, 78, 96, 103, 114, 138 Identity cultural, 219 social, 219 Ideology communist, 77–​78 market-​oriented, 77 Protestant-​relational, 225 socialist, 77–​78 IKEA, 234 Inbev, 61 Immigration, 46 India (See BRIC),2, 24 Individualism-​collectivism (see Hofstede),203, 218 Indonesia, 41 Industrial Revolution, 4, 39, 144 Inflation, 6 Infrastructure, 13 geographic distance and, 15 information, 16 Infosys, 59, 78, 97, 169, 242, 245 Inland Steel, 95 Innovation, 114, 276 Intel, 2, 85, 88 Institutions extractive economic, 43 extractive political, 43 inclusive economic, 70–​71, 223–​47 inclusive political, 223, 224 Integration Intellectual property, 17, 185   Index Intelligence cultural, 197 emotional, 200 social, 198 International Monetary Fund (IMF), 10, 14, 20, 190, 286 Iran, 36, 82, 272 petroleum reserves, 49 Iraq, 272 Ireland, 56, 66 ISIL/​ISIS (see Daesh),21 Israel, 82, 205, 223 Italdesign, 156 Italy, 66 Jaguar-​Land Rover, 73, 115, 117 Japan, 2, 25, 39, 40, 41, 233 reactive modernization and, 40 John Deere, 114, 146 KAO, 114 Keiretsu, 225 Kenya, 2 Komatsu, 245 Knowledge absorption, 175 ancillary, 183 capacity, 166 compulsory, 182 core, 182 creation, 175, 176–​7 criticality of tacitness, 174 cultural variations and, 180 explicit, 136, 139, 164 diffusion of, 175 idiosyncratic, 182 independent versus system, 174 management, 31 organizational, 173, 174 simple versus complex, 174, 175 stickiness, 179 systemic (organization-​specific), 139, 170 tacit, 136, 139, 164 transfer, 108, 109, 135, 164 307 outsourcing/​offshoring and, 152 Kukoba, 114 Labor, 58 Labor unions, 23 Language, 17, 234 culture and, 195, 209, 210, 218 knowledge management and, 180 technology transfer and, 172 Laos, 26 Latin American, 14, 17, 43 Lebanon, 272 Lenovo, 73, 96, 103 Levi Strauss, 48 Libya, 272 Lotus, 156 LVMH, 100 Malaysia, 41 Masculinity (See Hofestde),205 Mastercard International, 169 Matsushista (Panasonic), 107, 108, 130, 132, 133, 162 Mayo Clinic, 10, 183 McDonalds, 6, 48, 278 McIntosh, 102 McKenzeie & Co., 162, 173 MD Anderson Cancer Research Center, 183 Mercedes-​Benz, 51, 58, 241 MERCOSUR (Mercado Comun del Sur), 168, 254 Mexico, 2, 44 Microsoft, 2, 48, 49, 57, 58, 83, 124, 161, 162, 166, 245 Middle East, 7, 21, 82 Mindset cosmopolitan, 116 development of, 261 diffused, 234, 285 dimensionality of, 257 domestic, 252–​2 ethnocentric, 125 geocentric, 125   Index 308 Mindset (Cont.) global, 49, 126, 156, 183, 185, 190, 197, 205, 208, 209, 210, 227, 233–​8, 241, 244–​5, 272, 277 CAGE framework and, 262 competition drivers, 243 cost drivers, 242–​3 institutional drivers, 244 knowledge management and, 246–​7 market drivers, 241 organizational structure and, 246 international, 253 level of analysis, 257, 258 multinational, 254 organizational specific, 238, 240 parochial, 107, 125, 234, 235 person-​specific, 238, 240 regional, 254 Mittal Steel, 115 Modernity, 270 Japan and, 48 Mongolia, 26 Motivation, 195 Motorola, 96, 278 Mozambique, 222 NAFTA (North American Free Trade Agreement), 11, 286 National Cash Register (NCR), 167 Nationalism, 27, 67, 91 Natura, 102 Negotiation, 211, 228 Nemawashi, 132 Nestle Corp., 168, 245 Networks family, 251 friends, 251 global, 135 supply chain, 8 value chain, 97, 169 Nigeria, 2, 7, 81, 222 Nike, 103, 278 Nippon Steel, 9, 5 Nirma, 118 Nokia, 78, 83, 92, 93, 101, 103, 111, 134 Norilsk Nickel, 64 Norms, 214 loose, 217 tight, 216 North Korea, 17, 71 Norway, 36, 223 Novartis, 109, 278 Novo-​Nordisk, 278 OECD (Organization for Economic Cooperation and Development, 4, 163 Offshoring, 31, 143, 144, 145 cultural variations and, 150 decline in, 146 financial industry and, 147 ICT and, 147–​8 innovation and, 152 trust and, 150 value chain and, 148 Olevia, 88 OPEC (Organization of the Petroleum Exporting Countries), 21 Oracle, 49 Organizations global non-​profit profit Optimization, 112 Orientation overseas, 245 user, 245 Outsourcing, 31, 143 innovation and, 151, 152 intellectual property rights and, 153 standard of living and, 154 Pakistan, 57 Peat Marwick, 173 Perception, 195 Personality, 216 PetroBrazil, 61 Pfizer, 162, 170 Philippines, 46 Philips Corp., 107–​8, 130, 133   Index Poland, 58, 63, 64, 283–​4 Portugal, 21, 66 Posco, 95 Power, 17, 204–​5 distance (see Hofstede),204 political, 43 Processes psychological, 195 Procter & Gamble, 6, 93, 102, 107, 109, 114–​ 5, 126, 130, 132 Product life cycle of, 8 Protectionism, 14 PVR Cinemas, 99–​100 Quintiles, 100 Raytheon, 227 Reasoning cultural differences in, 196 moral, 195 styles of, 196 Reconfiguration, 113 offshoring/​outsourcing and, 155 Refugees, 284, 285 Regionalism, 25 Reliance Corp., 38, 242 Religion, 17 Renault-Nissan, 2, 165, 190 Reshoring, 31, 154 Resources natural, 13 restructuring of, 130, 192 velocity of, 98, 111, 112 Revlon, 52 Ringi, 132 Rolex, 100 Romania, 64 Royal Dutch Shell (Shell), 7, 36, 84, 91, 93, 278 Russia (See BRIC),2 corruption and, 63 GDP, 62 economy, 62 natural resources, 62 309 petroleum reserves, 49, 62 privatization and, 65 Samsung, 38, 96, 162, 169 SAP, 2 Saudi Arabia, 21, 36 petroleum reserves, 49 Self collective, 199, 204, 219, 220 private, 299, 204, 219, 220 public, 199, 204, 219, 220 Self-​disclosure, 217 Self-​efficacy, 199 Self-​monitoring, 215 Sensitivity cultural, 198 Sharp Manufacturing, 80 Siemens, 51, 58, 94, 162, 169 Simpatia, 225 Singapore, 40, 59 Singapore Airlines, 93 Slovakia, 64 Solectron, 88 Somalia, 71 Sony, 51, 58, 88, 107, 108, 130, 132, 162, 169, 174, 192, 250, 521 Sourcing, 90 local, 89 global, 89 South Africa, 2, 44, 69 South Korea, 41, 71 Southland Corp ( 7-​11), 99 Spain, 21 Specialization, 87 Stagnation economic China, 41 Japan, 41 Standardization, 122 Standard Oil, 7 Starbucks, 6 Steelcase, 228 Steelworkers Mining Co., 64 Strategy   310 center-​driven, 132 ethical considerations and, 90 global category, 93 global communication, 93 global customer, 93 global functional, 93 global product, 93 global segment, 93 international, 92 multidomestic, 107 multilocal, 107 organization structure and, 123 outsourcing and, 149 sourcing and, 89 structure and, 30 transnational, 108 Structure administrative heritage and, 138 centralized hub, 128, 129, 131 coordinated federation, 128, 129, 131 decentralized federation, 128, 129, 131 global products structure, 122, 125, 126 integration of, 137 international division, 125 organizational culture and, 136 organizational knowledge and, 136 regional area, 125 strategy and, 30 technology and, 136 Sundram Fasteners, 242 Support social, 252 Sweden, 222, 284 Switzerland, 70 Syndrome cultural, 218 not-​invented-​here (NIH), 129 Syria, 82, 223, 272 Taiwan, 41, 59 Taiwan Semiconductors, 85 Taoism, 40 Target, 161 Tarriffs, 8 Index Tata Consultancy Services, 2, 59, 78, 97, 115, 117, 162, 165, 169, 241, 242, 245 Tata Motors, 59, 73 Tata Steel, 95, 242 Taxation, 83 Teams global, 134, 136, 274 multicultural, 136 transnational, 136, 275 vitual, 134 Technology, 167 CAGE framework and, 170, 172 communication complexity of, 172 computer-​mediated, 24 diffusion of, 86 person-​embedded, 171 process-​embedded, 170–​1 product-​embedded, 170 transfer of, 164, 167, 168 VUCA and, 85 Terrorism, 284 Texaco, 214 Thailand, 41, 79 Thinking analytical, 195 dualistic, 196 holistic, 195, 197 non-​judgmental, 249 Time, 196, 206 Tourism, 70 medical, 147 Toyota, 2, 38, 51, 58, 61, 108, 124, 162, 165, 169, 182 TPP (Trans Pacific Partership), 11, 286 Trade free, 49 Traits cultural intelligence and, 200, 219 Transfer technology, 31 Transparency International Corruption Index, 222–​3   Index Trust, 17 Turkey, 2, 44, 69, 82 Ukraine 21, 82, 208 Uncertainty, 78, 79, 83, 117 avoidance (see Hofstede),205 structural, 79, 85 Unilever, 113, 114, 169, 245 United Kingdom (UK), 72 United Nations (UN), 10 United States (US), 2 economic geography, 46–​50 immigration and, 46 petroleum reserves, 49 political geography, 46–​50 UPS, 182 Utilization lean resources, 94 Value chain, 13 Venezuela, 7, 17, 214 petroleum reserves, 49 Vietnam, 41, 112 311 Vizio, 88 Vodafone, 83, 93 Volatility, 78, 79, 117 Vought Aircraft, 90 VSMDO-​Avisma, 64 VUCA (see volatility, uncertainty, complexity, and ambiguity),78, 113, 117 Wadia, 102 Walmart, 36, 116, 182, 287 West Bank, 82 Whirlpool International, 114, 274 Wipro, 21, 78, 97, 144, 245 World Bank, 10, 14, 20, 107, 191, 286 Workplace relational styles (WRS), 224 WTO (World Trade Organization), 10, 11, 14, 20, 45, 191, 244, 286 Xenophobia, 81 Xiaomi, 96 Zimbabe, 206 ZTE, 78       ... well-​grounded theoretical perspectives for understanding the nature of opportunities, challenges, and the future of global organizations in the 21st century   Chapter 1 Global Organizations. .. managers of global organizations must develop and use a global mindset, and understand and appreciate the nuances of different cultures Managers of global organizations must understand the unique... Cultural Variations and the Global Organization  189 8. Global Mindset and the Global Organization  233 9. Developing Effective Global Organizations: The Future 269 About the Authors  291 Author