MNEs that adopted a centralized hub organizational model were able to develop competitive advantage through their ability to transfer knowledge and expertise and adapt it to markets worldwide.

Question

Quizplus · Accepted Answer

The centralized hub model is adopted by companies that pursue a centrally controlled,export-based internationalization strategy in which the MNE keeps all major value-adding and strategic activities at home.These MNEs strive to secure competitive advantage at the upstream end of the value-added chain.As such,their competitive strategy emphasizes cost advantages and quality assurance which demands tight control over product development,procurement and manufacturing.

MNEs That Adopted a Centralized Hub Organizational Model Were Able