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Introduction
The following memo attempts to contrast the concept of a “Global” enterprise as modeled by
the authors B. Kogut in “What Makes a Company Global?” a Review of The Myth of the Global
Corporation, M. Mangelsdorf in "Building a Transnational Company", INC. Magazine 1993,
Bartlett and Ghoshal in "Managing across boarders New Strategic Requirements", Sloan
Management Review, Summer 1987 and Johan Lembke in “Global competition in the
information and communication technology Industry...", Business and Politics, v.4,#1, 2002. The
contrast discussion will form around five factors identified as fundamental to operating across
nations.
Factor #1: The Significance of National Origin
The authors appear to be evenly divided regarding the role the nation of origin plays in the
formation, comparative advantage and effective operation of a global industry. Kogut and
Mangelsdorf believe the nation plays a significant role in structure and operation. Kogut forms
his entire article on the notion that the
nationality of an enterprise is the sole determinate of comparative advantage. His theory is that
if global markets remain free, nations will become elements of a global value chain. Kogut’s only
variable for a global enterprise is how much to converge the various national operations.
Conversely, Bartlett and Ghoshal (B&G) and most particularly, Lembke, indicate that the nation
should not have to play a determining role in the enterprise. Rather B&G present the notion of
the “Transnational” (Bartlett and Ghoshal 1989) enterprise. The enterprise that is able to reap
the benefits of each nation locations expertise, yet share this expertise among all locations
forming a singular, responsive organization. Lembke takes the transparency of the nation to a ...