Abstract

Various contingency models have been developed to explain the strategy-structure fit for multinational corporations (MNCs). However, these models are fragmented, in that they address different strategic conditions and have been applied to different groups of MNC structures. Along with a critical review of the previous models, this paper develops a new three-dimensional model, which integrates contingencies from the traditional Stopford and Wells Model and the well-established GI (global integration)-LR (local responsiveness) framework. The new model considers a wider range of strategic conditions and aims to specify the strategy-structure fits for a broad array of MNC structures. The explanatory value of the new model is tentatively tested against data from a study of German MNCs.

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