Should Organizations Operate Internationally?
May 1, 2010 5 Comments
Organizations should work internationally because they would probably transfer their culture and best practices to the countries where they chose to work in. Transferring the knowledge to subsidiaries and international branches would help the multinational organization to save time and effort in communications and production (Mostyn, 2004). The standardization in the business processes would ensure consistency in the production and its quality, however, robust processes are needed to reach this level of alignment (Mostyn, 2004). Collective knowledge creation, trust-base collaborations and the multinational organization’s willingness to collaborate is the success reason to knowledge sharing and best practice implementation (Miesing, Kriger, & Slough, 2007). Multinational organizations might not be obligated to transfer their knowledge and best practices without the local government enforcement, but the organizational ethical commitment and the benefits resulted from it would help the organization to be ethical and supportive to the local community.
Miesing, P., Kriger, M. P., & Slough, N. (2007). Towards a model of effective knowledge transfer within transnationals: The case of Chinese foreign invested enterprises. Journal of Technology Transfer, 32(1-2), 109-122. doi: http://www.springerlink.com/link.asp?id=104998
Mostyn, A. (2004). The rise of global awareness. [Article]. Strategic Communication Management, 9(1), 5-5.