Operational Approaches in Organizational Structure

Abstract

This chapter analyzes the challenge of organizational setup in developing countries faced by MNEs. In doing so the chapter focuses on different types of structural options available for MNEs and studies factors influencing the decision of how to structure the MNE in developing countries. In essence, the chapter presents a list of structural options for MNEs to choose from according to their needs, contextual situations and strategic direction. The factors influencing the decision to structure the company are general factors, management orientations, corporate culture, information and communication technologies, strategy and learning organizations. Finally, the chapter forwards some essential recommendations for MNEs to follow when deciding about which organizational structure is relatively more suitable than others while operating in developing countries.