Implementation of Global Strategy

Manag Int Rev (2011) 51:179–192 DOI 10.1007/s11575-011-0071-6 R e s e a R c h a Rt i c l e

Effective Global Strategy Implementation
Structural and Process Choices Facilitating Global Integration and Coordination
Attila Yaprak · Shichun Xu · Erin Cavusgil

Abstract:
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this article offers a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to address is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world markets. Our central premise is that MNEs’ capabilities in establishing supporting structural and process mechanisms will enhance the effectiveness and efficiency of implementing their global strategies which would, in turn, lead to better firm performance.

Keywords: Integration and coordination · Global strategy · Firm performance · contingency framework

Received: 25.12.2009 / Revised: 15.08.2010 / Accepted: 11.10.2010 / Published online: 02.04.2011 © Gabler-Verlag 2011 Prof. A. Yaprak () Department of Marketing, Wayne State University, Detroit, USA e-mail: [e-mail] Asst. Prof. S. Xu Department of Marketing and Logistics, University of Tennessee, Knoxville, USA Asst. Prof. E. Cavusgil Department of Marketing, University of Michigan-Flint, Flint, USA

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Introduction The globalization of the world economy and markets has given rise to the growth of multinational enterprises (MNEs). With the expanded geographical scope and dispersed operations across national borders, managing MNEs effectively has become a challenging task for managers. As such, numerous studies have been conducted to understand what contributes to the success of MNEs in the global market. Many studies have adopted the resource-based view (RBV) of the firm as the theoretical basis of such an exploration, arguing that the

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