Exam 5: Creating Worldwide Innovation and Learning: Exploiting Cross Border Knowledge Management

In developing differentiated coordination processes in a transnational organization, which of the following factors would be most important for an MNC manager to consider?

The greatest risk facing center-for-global innovation is market insensitivity.

Mr. Smith is the recently appointed CEO of a diversified MNE operating in 22 countries on four continents and in multiple industries ranging from bulk chemicals to consumer packaged goods. He became concerned that in his very decentralized organization, all businesses were managed primarily by the national subsidiaries. With a poor record in innovation, Smith wondered what he could do to improve the innovation process. What two or three changes would you recommend he consider?

What are the challenges associated with managing a center-for-global innovation process and what are some of the measures that can be employed to ensure that the process is efficient?

The most effective way to coordinate knowledge flows in a transnational organization is through the process of formalization.

Transnational innovation requires management processes to be dominated by simple systems of control.

The development of transnational innovation requires that the roles performed by organizational units worldwide are essentially uniform, and that the headquarters manages all of its subsidiaries in the same manner.

Worldwide Consulting Limited is an Italian-based service company with activities in 23 countries. The company operates by embedding a large number of expatriates in foreign subsidiaries, even though the expatriates are not always familiar with the host country to which they are assigned. What is the most important benefit Worldwide Consulting is most likely to achieve through this practice?

Campbell Enterprises is an MNE in which local-for-local innovation is a priority. A new CEO wants to understand the conditions needed to make such innovations more effective, as well as your reasons for making such recommendations.

Despite the differences that exist among transnational organizations, there is one optimal approach to managing innovation in these firms.