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Experimentalist Systems in Manufacturing Multinationals

  • Asia Review
  • Abbr : SNUACAR
  • 2016, 6(1), pp.147~193
  • Publisher : 아시아연구소
  • Research Area : Social Science > Social Science in general

Gary Herrigel 1

1시카고 대학교

Candidate

ABSTRACT

The new recursive and transnational experimentalist systems have theoretically distinctive characteristics that are not captured in much of the existing literature on MNC governance. The MNC affiliates must be able to offer products that appeal specifically to the needs and preferences of local customers and that are designed according to the host country regulatory norms and standards. This presses manufactures to upgrade local operations in three areas: production worker skill levels, supply base sophistication, and lastly, local R&D, design, and engineering capability. Firms need to optimize exports with global production capacities while simultaneously reconciling constant imperatives for process and product optimization, innovation, cost reduction and learning. This should be done not only within individual plants, but also centrally and locally across the vast global organizations. We claim that the best manufacturing MNCs are creating (transnational) governance architectures that systematically induce organizational destabilization and recompositional experimentation, as a mechanism to foster innovation and learning. Recursive learning organizations have heterogeneous, hybrid and constantly self-recomposing governance arrangements with varying and highly contingent admixture of joint problem solving, team based deliberation, hierarchical insulation and stakeholder in/exclusion. In this sense, the core emergent institutions in the new multi-nationals are those that disrupt, rather than those that govern.

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