Conference paper

STRATEGIC DIRECTION OF MULTINATIONAL CORPORATIONS IN HYPERCOMPETITIVE ENVIRONMENT

Darko Tipurić orcid.org/0000-0001-8785-0179 ; Department for Organization and Management, Faculty of Economics and Business Zagreb, University of Zagreb, Croatia
Najla Podrug ; Department for Organization and Management, Faculty of Economics and Business Zagreb, University of Zagreb, Croatia
Maja Daraboš ; Department for Organization and Management, Faculty of Economics and Business Zagreb, University of Zagreb, Croatia

Abstract

The paper brings together current knowledge on multinational corporations' strategic orientations displayed in hypercompetitive environment. Competitive dynamics is a phenomenon that is becoming more evident in many industries, even in those which were considered relatively stable until recently. There has been an alternation in the competitive conditions in various industries, visible through a sudden increase in competitive activity, greater variability in the profitability of the industry, as well as in noticeable changes in market shares. The main point of this paper is to highlight that even the largest and most successful MNCs experience different internationalization paths and paces. The complexity of MNCs regarding the multiple geographical markets and the dispersed activities within the firm often renders centralized management models ineffective and inefficient. The acknowledgement of the increased relevance of foreign subsidiaries and the observation that some subsidiaries take over strategic roles within the MNC led to a conceptualization of the MNC as a network in hypercompetitive environment.

Keywords

multinational corporations; strategic orientation; hypercompetitive environment

Hrčak ID:

161629

URI

https://hrcak.srce.hr/161629

Publication date:

1.10.2015.

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