The three conflicting environmental forces that MNEs encounter are cross-border integration and coordination, national differentiation and responsiveness, and worldwide innovation and learning.

Question

Quizplus · Accepted Answer

These three conflicting environmental forces are commonly recognized in the literature on multinational enterprises (MNEs). Cross-border integration and coordination refer to the pressures to standardize and integrate operations across national borders, while national differentiation and responsiveness refer to the pressures to adapt to local differences in markets, institutions, and cultures. Worldwide innovation and learning refer to the pressures to leverage global knowledge and capabilities to create new knowledge and to transfer knowledge across national and organizational boundaries. These three forces can create tensions and trade-offs for MNEs as they try to balance global integration with local responsiveness and innovation.

The Three Conflicting Environmental Forces That MNEs Encounter Are Cross-Border