The Tortuous Evolution of the Multinational Corporation
The tortuous Evolution of the Multinational Corporation
3 State of Mind Attitudes
• ETHNOCENTRIC - Home Country Attitudes • POLYCNTRIC - Host Country Oriented • GENOCENTRIC - World Oriented
3 State of Mind Attitudes
Ethnocentric – Home Oriented
– Home Nationals are superior, more trust worthy and more reliable than any foreigners in over seas headquarters or subsidiaries – The performance criteria for men and products are “Home made” – Advise/Council flows from headquarters to subsidiaries. – “This works at home, therefore it must work in your country” attitude. – Men of home nationality are recruited and trained for key positions everywhere in the world.
3 State of Mind Attitudes
Plolycentric – Host Country Oriented
– Host cultures are different and that foreigners are difficult to understand – Locals know what is best for them – Use a top local executive, strong , trustworthy with an understanding of how the host government works. – Little understanding of how things are being done as long as they earn profit. – Assume that since people are different standards of performance, initiatives and training methods must be different. – No local manager can aspire to a senior position at the headquarters.
3 State of Mind Attitudes
Geocentric – World Oriented
– No equate superiority with nationality – Seek the best men regardless of nationality to solve the company's problems anywhere in the world. – Subsidiaries are a good citizen of the host nation and contribute to benefits such as:
• Increasing supply of hard currency • New skills • Knowledge of advanced technology
– World wide approach in both headquarters and subsidiaries – Geocentric approach – Bring the best man in the world regardless of nationality
The EPG Profile
• A firm's profile can be drawn in ethnocentric, polycentric and geocentric dimensions • A degree of ethnocentrism, polycentrism and geocentrism can be established by product, function and
3 State of Mind Attitudes
• ETHNOCENTRIC - Home Country Attitudes • POLYCNTRIC - Host Country Oriented • GENOCENTRIC - World Oriented
3 State of Mind Attitudes
Ethnocentric – Home Oriented
– Home Nationals are superior, more trust worthy and more reliable than any foreigners in over seas headquarters or subsidiaries – The performance criteria for men and products are “Home made” – Advise/Council flows from headquarters to subsidiaries. – “This works at home, therefore it must work in your country” attitude. – Men of home nationality are recruited and trained for key positions everywhere in the world.
3 State of Mind Attitudes
Plolycentric – Host Country Oriented
– Host cultures are different and that foreigners are difficult to understand – Locals know what is best for them – Use a top local executive, strong , trustworthy with an understanding of how the host government works. – Little understanding of how things are being done as long as they earn profit. – Assume that since people are different standards of performance, initiatives and training methods must be different. – No local manager can aspire to a senior position at the headquarters.
3 State of Mind Attitudes
Geocentric – World Oriented
– No equate superiority with nationality – Seek the best men regardless of nationality to solve the company's problems anywhere in the world. – Subsidiaries are a good citizen of the host nation and contribute to benefits such as:
• Increasing supply of hard currency • New skills • Knowledge of advanced technology
– World wide approach in both headquarters and subsidiaries – Geocentric approach – Bring the best man in the world regardless of nationality
The EPG Profile
• A firm's profile can be drawn in ethnocentric, polycentric and geocentric dimensions • A degree of ethnocentrism, polycentrism and geocentrism can be established by product, function and