1Absorptive Capacity
the ability to recognize the value of new information, assimilate it, and apply it
2Center of Excellence
an MNE subsidiary explicitly recognized as a source of important capabilities, with the intention that these capabilities be leveraged by, and/or disseminated to, other subsidiaries
3Country (regional) manager
Manager of a geographic area, either a country or a region.
4Explicit knowledge
Knowledge that is codifiable (can be written down and transferred with little loss of richness).
5Geographic Area Structure
an organizational structure that organizes the MNE according to different countries and regions
6Global Account Structure
A customer-focused dimension that supplies customers (often other MNEs) in a coordinated and consistent way across various countries.
7Global Matrix
an organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures, especially for MNEs adopting a transnational strategy
8Global Product Division Structure
an organizational structure that assigns global responsibilities to each product division
9Global Standardization Strategy
A strategy that focuses on development and distribution of standardized products worldwide in order to reap the maximum benefits from low-cost advantages.
10Global Virtual team
Team whose members are physically dispersed in multiple locations in the world and often operate on a virtual basis
11Home Replication Strategy
A strategy that emphasizes the duplication of home country-based competencies in foreign countries.
12Integration-responsiveness framework
a framework of MNE management on how to simultaneously deal with the pressures for both global integration and local responsiveness.
13International Division
An organizational structure that is typically set up when firms initially expand abroad, often engaging in a home replication strategy.
14Knowledge Management
The structures, processes, and systems that actively develop, leverage, and transfer knowledge.
15local responsiveness
the necessity to be responsive to different customer preferences around the world
16Localization (multidomestic) strategy
A strategy that focuses on a number of foreign countriesegions, each of which is regarded as a standalone local (domestic) market worthy of significant attention and adaptation.
17Micro-Macro Link
The micro, informal interpersonal relationships among managers of various units may greatly facilitate macro, intersubsidiary cooperation among these units.
18Open Innovation
The use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.
19Organizational Culture
The collective programming of the mind that distinguishes the members of one organization from another.
20Social Capital
The informal benefits individuals and organizations derive from their social structures and networks.
21Solution-based structure
A customer-focused solution in which a provider sells whatever combination of goods and services the customers prefer, including rivals' offerings
22Subsidiary initiative
The proactive and deliberate pursuit of new opportunities by a subsidiary.
23Tacit Knowledge
Knowledge that is noncodifiable, whose acquisition and transfer require hands-on practice
24Transnational Strategy
A strategy that endeavors to be simultaneously cost efficient, locally responsive, and learning-driven around the world
25Worldwide (global) mandate
A charter to be responsible for one MNE function throughout the world.