2010 Volume 43 Issue 3 Pages 4-17
In this paper, we present a new perspective regarding the introduction of intra-organizational competition to the organizational design of multinational corporations. In the multinational corporation, foreign subsidiaries build multiple organizational capabilities based on the locational advantages of various locations. With the assumption that this varieties of organizational capabilities exist, under high environmental uncertainty, a multinational corporation can raise the potential of adaptation to its environment through the introduction of intra-organizational competition between multiple locations. This paper will discuss the validity of this logic based on a case study approach of Showa Denko Company.