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The Differentiated Network: Organizing Multinational Corporations for Value Creation [Hardcover]

by Nitin Nohria, Sumantra Ghoshal
4.5 out of 5 stars  See all reviews (2 customer reviews)

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Book Description

February 19, 1997 0787903310 978-0787903312 1
Discover a Breakthrough Model for MNCs

In a dynamic global economy, multinational corporations (MNCs) face certain competitive challenges that traditional, hierarchical hub and spoke organizations simply aren't geared to meet. But in this landmark work, Harvard Business School professor Nitin Nohria and London Business School Professor Sumantra Ghoshal present a viable alternative -- the differentiated network. Writing for managers seeking changes in their administrative systems that boost firm performance, and for academics engaged in research organization design, the authors detail how the competitive MNC can fully tap the value creation potential of its globally distributed capabilities.

Editorial Reviews

From the Inside Flap

In a dynamic global economy, multinational corporations (MNCs) face certain competitive challenges that traditional, hierarchical "hub and spoke" organizations simply aren't geared to meet. But in this landmark work, authors Nitin Nohria and Sumantra Ghoshal present a viable alternative — the differentiated network. Writing for managers seeking changes in their administrative systems that boost firm performance, and for academics engaged in research organization design, the authors detail how the competitive MNC can fully tap the value creation potential of its globally distributed capabilities. The authors build on their premise that the units of an MNC should be organized as a differentiated network in order to optimize use of resources, encourage knowledge exchange and development, and increase innovation. By systematically grounding this core concept in organization theory and rigorously testing its validity using large sample data, they are able to offer practical application strategies. Nohria and Ghoshal draw on in-depth case studies of the organization, structures, systems, and management practices in nine large MNCs, and show why overall subsidiary performance is positively correlated with a high degree of internal differentiation and high levels of shared values across the subsidiaries. The nature and functioning of linkages within each national subsidiary, between headquarters and subsidiary, and among the subsidiaries themselves in explored in detail, as the importance of integrative mechanisms.The pioneering nature of their detailed research into the implications of organization theory allows Nohria and Ghoshal to draw the most reliable and robust real-world conclusions about the differentiated network ever available. As such, the organizational model they present in The Differentiated Network can be used by any multinational corporation seeking competitive advantage in the worldwide marketplace...today and well into the foreseeable future

From the Back Cover

In a dynamic global economy, multinational corporations (MNCs) face certain competitive challenges that traditional, hierarchical "hub and spoke" organizations simply aren't geared to meet. But in this landmark work, Harvard Business School professor Nitin Nohria and London Business School Professor Sumantra Ghoshal present a viable alternative — the differentiated network. Writing for managers seeking changes in their administrative systems that boost firm performance, and for academics engaged in research organization design, the authors detail how the competitive MNC can fully tap the value creation potential of its globally distributed capabilities.

Product Details

  • Hardcover: 253 pages
  • Publisher: Jossey-Bass; 1 edition (February 19, 1997)
  • Language: English
  • ISBN-10: 0787903310
  • ISBN-13: 978-0787903312
  • Product Dimensions: 9.2 x 6.2 x 1 inches
  • Shipping Weight: 1.2 pounds (View shipping rates and policies)
  • Average Customer Review: 4.5 out of 5 stars  See all reviews (2 customer reviews)
  • Amazon Best Sellers Rank: #2,804,999 in Books (See Top 100 in Books)

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2 of 3 people found the following review helpful
5.0 out of 5 stars Collection of excellent academic papers December 4, 1997
Format:Hardcover
This book may treat as contiuation of Managing Across Borders. However it's more academic in content. Most content appeared in academic journals. It's valuable for whose interested in MNC management, organizational theory. Besides, focus on western MNCs, it's a great work.
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2 of 4 people found the following review helpful
Format:Hardcover
This book is good. It helps us to grasp reality the manager in multi National Corporation face. Based on effective theory of growth of the firm, empirical analysis implicates internal organization forms influence competitive advantage of multi National Corporation. (It support lundvall influential book on Āenational system and innovationĀf) It is interesting.
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