Challenges Facing Multinational Organizations Transferring Knowledge Between Subsidiaries Management Essay

Challenges Facing Multinational Organizations Transferring Knowledge Between Subsidiaries Management Essay Multinational organizations (MNCs) have presented in academic debate since the globalization and intensified transnational competition has led to the introduction of a variety of new organizational practices. As the organizations expand globally, their organizational structures and behavior tend to become increasingly more complex. Especially for MNCs, although the attention of cost management may no longer directly affect company performance, the strategies of MNCs involve other managerial skills such as an interest in developing organizational structures and highly performing employees (Jacoby 2005; Dobbin 2005). Moreover, those firms that compete in the global marketplace typically face several types of competitive pressures, cost reductions and local responsiveness, conflicting demands on the MNCs. Making global strategies should emphasize how the MNC can gain competitive advantages through market efficient in order to achieve its goal. Those advantages may come from using resou rces endowments, economies of scale, information and communication technologies (ICT), allocation of resources, training and learning programs from human resources management, and productive capacity (Malnight 1996). By achieving those advantages MNC can managerially well of their flexibility by altering their resource configuration and how they structures and manages in global market (Bartlett Porter 1986; Prahalad Myerson 1982). The second factor is multiculturalism. It refers to the extent of supply and demand factors those diverse cultural backgrounds and coordinates the business activities in order to achieve competitive advantages and productive efficiency.