TechInnovation is a large MNE operating in an environment characterized by rapid changes.During the past 50 years,its subsidiaries have operated independently.Which of the following actions will be least helpful to increase the interdependence across its widely dispersed national organizations?
A) TechInnovation could centralize more decision-making to counter-balance the decentralization that has taken place during the past 50 years.
B) TechInnovation could create regular cross subsidiary meetings to coordinate activities and resolve differences.
C) TechInnovation could break up its value-chain to ensure that subsidiaries perform interrelated activities.
D) TechInnovation could develop career paths to routinely transfer managers across subsidiaries.

Question

Quizplus · Accepted Answer

(To create an effective interdependent organization, an MNE must both: (i) develop a configuration of resources that is neither centralized, nor decentralized, but is both dispersed and specialized.Such a configuration lies at the heart of the transnational company's integrated mode of operations; and, (ii) build inter-unit integration mechanisms (ie., holding regular cross-subsidiary meetings; ensuring that subsidiaries perform interrelated activities; routinely transferring managers across subsidiaries) to ensure that task interdependencies lead to the benefits of synergy rather than the paralysis of conflict).

TechInnovation Is a Large MNE Operating in an Environment Characterized