Encouraging entrepreneurial activity in multinational corporations

Encouraging entrepreneurial activity in multinational corporations

CRANE, R. The Practice of Regional Development in Indonesia: Resolving Central-Local Coordination Issues in Planning and Finance Public Administration...

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CRANE, R. The Practice of Regional Development in Indonesia: Resolving Central-Local Coordination Issues in Planning and Finance Public Administration and Development 15 (Z), 139-149 (May 1995).

Renewed interest by the Indonesian government in decentralization and cost recovery has led to real as well as illusory reforms. Greater regional government participation in the national planning process would be beneficial. A gradual shift to general purpose grants would lead to regional development plans consistent with decentralization while maintaining central control.

than for those that stay in the parent firm’s main product areas.

BIRKINSHAW,J. Taking the Initiative Business Quarterly59

(4), 97-102 (Summer 1995). Canadian subsidiaries of foreign parents will have to become more entrepreneurial to remain viable members of the multinational company. Four strategies are recommended. One is to pursue new business opportunities, another is to bid for a proposed corporate investment. Existing mandates should be extended and existing operations reconfigured. Sponsorship at the top is critical though negotiating detail with mid level managers in the parent remains necessary.

PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-MULTINATIONAL CORPORATIONS

BIRKINSHAW,J. Encouraging Entrepreneurial Activity in Multinational Corporations Business Horizons 38 (3), 32-38 (May-June

1995). Multinational corporations are facing competing imperatives for global integration and local sensitivity. Many large multinational corporations are moving towards global organization forms that effectively eliminate the need for national subsidiary management. The world mandate approach is attractive because it offers the benefits of national subsidiary development without sacrificing global efficiencies. But to achieve this, subsidiary managers must learn to take the initiative and not simply implement orders from ‘on high’.

LI JIATAO Foreign Entry and Survival: Effects of Strategic Choices on Performance in International Markets Strategic Management Journal 16 (5), 333-351

(June 1995). An investigation is made of effective strategies that can reduce the risk of failure in international expansion by examining the entry and survival of foreign subsidiaries in the US computer and pharmaceutical industries over the 1974-89 period. The effects of 1. diversification strategies, 2. entry strategies and 3. organizational learning and experience on the survival probabilities of foreign subsidiaries are examined. The results show a higher exit rate for foreign acquisitions and joint ventures than for subsidiaries established through greenfield investments and indicate a higher exit rate for subsidiaries that diversify

PLANNING IN SPECIFIC COMPANIES SITUATIONS-INDIA

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BANKS, P. and NATARAJAN,G. India: The New Asian Tiger Business Horizons 38 (3), 47-50

(May-June 1995) The Indian subcontinent with the world’s largest democracy is cultivating several advantages for foreign business looking to invest. The one dark cloud is the fiscal deficit. Nonetheless companies are optimistic, encouraged by the steps the country is taking to address its economic and regulatory problems. There is a real opportunity to build highly productive profitable operations.

PLANNING IN SPECIFIC COMPANIES SITUATIONS-SILICON VALLEY

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BAHRAMI,H. and EVANS, S. Flexible Re-cycling and High-Technology Entrepreneurship California Management Review 37 (3), 62-89

(Spring 1995). High technology firms, venture capitalists, support infrastructure, globally diverse talent pool, academic research institutes have coalesced in Silicon Valley to become a dynamic ecosystem. This ecosystem enables change and continuity to coexist. It thrives on processes of flexible recycling, as start-ups and spin-offs are formed. Indeed, this may provide an alternative vehicle for policy-makers to examine issues related to global competitiveness and the growth of high-technology industries. Strategies need to be recalibrated. Permanence of sustainability may Long Range Planning Vol. 28

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