International Human Resource Management-MJ Version

organizational model in the framework. Some authors (Sundaram and Black,
1992) simply equate it with the transnational configuration, while other
authors (Ghoshal and Nohria, 1993; Welge, 1996) place it in the lower left
corner. As we indicated above, an international strategy assumes someconcern
with both integration and responsiveness. We therefore argue that the actual
position would lie in between, leaning somewhat more to the lower left corner.

5 AN EMPIRICAL TEST OF TYPOLOGIES OF

MULTINATIONAL COMPANIES

Bartlett and Ghoshal’s typology, as described in the previous section, is proba-
bly the most popular typology of MNCs in both academic and professional
circles. However it was based on an in-depth study of just nine multinational
companies in three different industries and includes few specifics about struc-
tural elements and the use of different control mechanisms. This section there-
fore describes the results of a large-scale empirical test and extension of their
typology in over 100 MNCs from nine different countries (USA, Japan,
Germany, France, UK, Sweden, Switzerland, Finland and the Netherlands),
operating in eight different industries: consumer electronics, computers, auto-
mobile, petroleum, food & beverages, pharmaceuticals, chemicals and paper.

Strategy and Structure of Multinational Companies 51

FIGURE 2.5

Integration and differentiation needs at Unilever (adapted from Bartlett and
Ghosal, 1989: 97)

Businesses Functions Tasks

high

low high low high low high

Need for national differentiation and responsiveness

Need for

global

coordination

and

integration

Chemicals Research

Detergents

Product

policy

Personal

products

Packaged

foods

Marketing

Product

development

Manufacturing

Sales

Advertising

Pricing

Distribution

Promotion