Horses for courses : organizational forms for multinational corporations

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      <subfield code="a">One of the most enduring ideas of organization theory is that an organization's structure and management process must "fit" its environment, in the same way that a particular horse might be more suited to one course than another. Ghoshal and Nohria show the continued relevance of this classic insight for the organization of multinational corporations. They offer a simple scheme to classify the environment and structure of multinational corporations (MNCs). Then, based on data on forty-one large MNCs, they show how some combinations of environment and structure fit better than others. What drives fit is the principle of requisite complexity -the complexity of a firm's structure must match the complexity of its environment. Though developed for MNCs, their argument can also apply to multidivisional firms that operate in different markets or business segments</subfield>
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