Lecture Slides

Question 1

Bear

Answer 1

Reinforces the centralisation of decision-making in the multinational corporation and provides a direct means of monitoring subsidiary operations. Can be replaced by IT and control systems

Question 2

Bumble bee

Answer 2

Fly from “plant to plant” and facilitate cross-pollination and transfer of ideas/practices between various units/departments. Can transfer practices and culture across units. Socialisation of host employees into corporate culture. Can be replaced by remote work, VR, social media, network platforms, etc.

Question 3

Spider

Answer 3

Integration of host employees into corporate networks and the development of informal social networks (capital) throughout the multinational corporation. Can be replaced by remote work, VR, social media, network platforms, etc.

Question 4

Stages in the adjustment process

Answer 4

(1) Honeymoon, (2) Culture shock, (3) Adjustment, and (4) “Mastery”

Question 5

Visible part of culture

Answer 5

Artefacts, practices, and behaviours

Question 6

Artefacts

Answer 6

What people have created

Question 7

Practices

Answer 7

Symbols, rituals

Question 8

Invisible part of culture

Answer 8

Norms, values and beliefs, and underlying assumptions

Question 9

Values and beliefs

Answer 9

Determine what is considered to be important

Question 10

Norms

Answer 10

Unwritten rules

Question 11

Underlying assumptions

Answer 11

Unconscious, taken-for-granted suppositions on how issues should be tackled

Question 12

Training

Answer 12

Gives expatriate managers skills for the foreign posting

Question 13

Development

Answer 13

Intended to develop the manager’s skills over his or her career with the firm

Question 14

Compensation

Answer 14

More of a problem in geocentric staffing

Question 15

Balance sheet approach

Answer 15

Includes base salary, a foreign service premium, allowances of various types, tax differentials, and benefits. Attempts to provide expatriates with the same standard of living in their host countries as they enjoy at home plus a financial inducement

Question 16

Base salary

Answer 16

Same range as the base salary for a similar position in the home country. Normally paid in either home-country currency or local currency

Question 17

Benefits

Answer 17

Same level of medical and pension benefits abroad that they received at home

Question 18

International trade secretariats (ITSs)

Answer 18

Cause competition between national unions. Wide variation in union structure

Question 19

Differentiated approach

Answer 19

Innovation separated with integration mechanisms as strategic, tactical, and operational levels

Question 20

Integrated approach

Answer 20

Innovation integrated in primary business processes and organisation

Question 21

Degree of routinisation

Answer 21

From loosely structured, rudimentarily defined processes to highly structured, formalised processes

Question 22

Hybrid approach

Answer 22

Integration at corporate level. Innovation is delegated to operating companies with differentiated innovation organisation

Question 23

Inertia

Answer 23

Hinders mature firm’s ability to continuously develop new competitive advantages

Question 24

Dynamic capabilities

Answer 24

The firm’s ability to integrate, build, and reconfigure internal and external resources/competences to address and shape rapidly changing business environments

Question 25

Sensing & seizing innovation opportunities

Answer 25

Identify and value techno/market opportunities. Involves business case development and decision-making

Question 26

Coordinating innovation activity

Answer 26

Manage innovation portfolio and delegate innovation activity and disseminate

Question 27

Executing innovation projects

Answer 27

Managing projects from ideation to market. Scaling-up, business integration, roll-out

Question 28

Sourcing innovation externally

Answer 28

Acquiring (access to) innovations and competences. Collaborate or outsource innovation to partners

Question 29

Innovation leadership

Answer 29

To lead: establish and enforce innovation strategy. Involves tension management

Question 30

Tension management

Answer 30

Balancing exploration/exploitation and dealing with frictions

Question 31

Performance management

Answer 31

Validation and value management. Involves learning

Question 32

Learning

Answer 32

Building, enhancing, and disseminating competences

Question 33

Resource-drain

Answer 33

Existing business units consume most of the company’s resources (money, talent, time), leaving little left for new, experimental projects

Question 34

Cannibalisation of innovation

Answer 34

New innovations might compete with or hurt the sales of the company’s current products, so they are often blocked or underfunded internally