Which of the following is the basic difference between multidomestic corporations and global companies?

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journal article

Toward an Integrative Model of Strategic International Human Resource Management

The Academy of Management Review

Vol. 21, No. 4 (Oct., 1996)

, pp. 959-985 (27 pages)

Published By: Academy of Management

https://doi.org/10.2307/259160

https://www.jstor.org/stable/259160

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Abstract

This article builds on previous work in international human resource management by drawing on concepts from the resource-based view of the firm and resource dependence to develop a theoretical model of the determinants of strategic international human resource management (SIHRM) systems in multinational corporations. The article then offers propositions concerning the relationships between a number of key determinants and the multinational corporation's overall SIHRM approach, the design of a particular affiliate's HRM system, and the HRM system for critical groups of employees within the affiliate.

Journal Information

The Academy of Management Review, now in its 26th year, is the most cited of management references. AMR ranks as one of the most influential business journals, publishing academically rigorous, conceptual papers that advance the science and practice of management. AMR is a theory development journal for management and organization scholars around the world. AMR publishes novel, insightful and carefully crafted conceptual articles that challenge conventional wisdom concerning all aspects of organizations and their role in society. The journal is open to a variety of perspectives, including those that seek to improve the effectiveness of, as well as those critical of, management and organizations. Each manuscript published in AMR must provide new theoretical insights that can advance our understanding of management and organizations. Most articles include a review of relevant literature as well. AMR is published four times a year with a circulation of 15,000.

Publisher Information

The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy's central mission is to enhance the profession of management by advancing the scholarship of management and enriching the professional development of its members. The Academy is also committed to shaping the future of management research and education. Founded in 1936, the Academy of Management is the oldest and largest scholarly management association in the world. Today, the Academy is the professional home for more than 18290 members from 103 nations. Membership in the Academy is open to all individuals who find value in belonging.

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Which of the following is the basic difference between multidomestic corporations and global companies?

Management, 12e (Robbins/Coulter)

Chapter 3 Managing in a Global Environment

1) Americans tend to suffer from parochialism.

Answer: TRUE

Page Ref: 75

Learning Outcome: Identify the fundamental concepts and issues of international business and

management

AACSB: Multicultural and Diversity Understanding; Analytic Skills

Ch. Objective: 1

Difficulty: Easy

Classification: Conceptual

2) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or

technology.

Answer: TRUE

Page Ref: 75

Learning Outcome: Identify the fundamental concepts and issues of international business and

management

AACSB: Multicultural and Diversity Understanding

Ch. Objective: 1

Difficulty: Easy

Classification: Conceptual

3) Managers with a polycentric attitude tend to view every foreign operation as difficult and hard

to understand.

Answer: TRUE

Page Ref: 75

Learning Outcome: Identify the fundamental concepts and issues of international business and

management

AACSB: Multicultural and Diversity Understanding

Ch. Objective: 1

Difficulty: Easy

Classification: Conceptual

4) The polycentric attitude is a world-oriented view focusing on using the best approaches and

people from around the globe.

Answer: FALSE

Page Ref: 75

Learning Outcome: Identify the fundamental concepts and issues of international business and

management

AACSB: Multicultural and Diversity Understanding

Ch. Objective: 1

Difficulty: Easy

Classification: Conceptual

1

Copyright © 2014 Pearson Education, Inc.

What is the difference between Multidomestic company and global company?

Multidomestic and global companies are similar in that both involve operations in two or more countries. The central difference is strategic. Multidomestic companies change some aspect of what they do in each country, whereas global companies maintain the same basic business approach in each market.

What is the difference between a global strategy and a Multidomestic strategy?

In contrast to a multidomestic strategy, a global strategy is centralized and controlled by the home office and seeks to maximize global efficiency Under this strategy, products are much more likely to be standardized rather than tailored to local markets.

What is an example of a Multidomestic company?

A great example of a multidomestic company is Nestlé. Nestlé uses a unique marketing and sales approach for each of the markets in which it operates. Furthermore, it adapts its products to local tastes by offering different products in different markets.

What are the characteristics of a multidomestic corporation?

“A multidomestic corporation is a multinational corporation that operates on a localized management structure.” It decentralizes rather than centralizing and making every decision from a primary location. It permits presidents, managers, or their equivalents and others in the operating country for making the decisions.