Multi National Corporations
AN EMPIRICAL TEST AND EXTENSION OF THE
BARTLETT AND GHOSHAL TYPOLOGY OF
MULTINATIONAL COMPANIES
Anne-Wil Harzing
Version October 1999
A revised version of this paper appeared in Journal of International
Business Studies, vol 31 (2000), no. 1, pp. 101-120.
Copyright © 1999 Anne-Wil Harzing. All rights reserved.
Do not quote or cite without permission from the author.
Dr. Anne-Wil Harzing
University of Melbourne
Department of Management
Faculty of Economics & Commerce
Parkville Campus
Melbourne, VIC 3010
Australia
Email: anne-wil@harzing.com
Web: www.harzing.com
AN EMPIRICAL TEST AND EXTENSION OF THE
BARTLETT AND GHOSHAL TYPOLOGY OF
MULTINATIONAL COMPANIES
This study offers an empirical test and extension of the Bartlett and Ghoshal typology of MNCs. A three-fold typology of multinational companies: global, multidomestic and transnational is induced from the literature. This typology is tested using data from 166 subsidiaries of 37 MNCs, headquartered in nine different countries. Subsidiaries in the three types of MNCs are shown to differ significantly on aspects of interdependence, local responsiveness, control mechanisms and expatriate presence.
INTRODUCTION
Most of the literature in international management either explicitly or implicitly assumes the existence of different types of MNCs. Terms such as polycentric, geocentric and ethnocentric and multidomestic, international, global and transnational are often used to denote different types of MNCs. Several of these typologies have become standard textbook matter and are widely taught in courses on international business and management. There are several reasons why a typology of MNCs can be useful for both academics and students. First, it can reduce the complexity of multinational organizational reality into a manageable number of related characteristics, making it easier to understand and explain the functioning of multinational companies. Second, if meaningful
BARTLETT AND GHOSHAL TYPOLOGY OF
MULTINATIONAL COMPANIES
Anne-Wil Harzing
Version October 1999
A revised version of this paper appeared in Journal of International
Business Studies, vol 31 (2000), no. 1, pp. 101-120.
Copyright © 1999 Anne-Wil Harzing. All rights reserved.
Do not quote or cite without permission from the author.
Dr. Anne-Wil Harzing
University of Melbourne
Department of Management
Faculty of Economics & Commerce
Parkville Campus
Melbourne, VIC 3010
Australia
Email: anne-wil@harzing.com
Web: www.harzing.com
AN EMPIRICAL TEST AND EXTENSION OF THE
BARTLETT AND GHOSHAL TYPOLOGY OF
MULTINATIONAL COMPANIES
This study offers an empirical test and extension of the Bartlett and Ghoshal typology of MNCs. A three-fold typology of multinational companies: global, multidomestic and transnational is induced from the literature. This typology is tested using data from 166 subsidiaries of 37 MNCs, headquartered in nine different countries. Subsidiaries in the three types of MNCs are shown to differ significantly on aspects of interdependence, local responsiveness, control mechanisms and expatriate presence.
INTRODUCTION
Most of the literature in international management either explicitly or implicitly assumes the existence of different types of MNCs. Terms such as polycentric, geocentric and ethnocentric and multidomestic, international, global and transnational are often used to denote different types of MNCs. Several of these typologies have become standard textbook matter and are widely taught in courses on international business and management. There are several reasons why a typology of MNCs can be useful for both academics and students. First, it can reduce the complexity of multinational organizational reality into a manageable number of related characteristics, making it easier to understand and explain the functioning of multinational companies. Second, if meaningful