Strategic Management: Formulation and Implementation

Materials Availability

The third reason why MNEs might wish to adopt their production technology in foreign countries is to take account of the differences in the availability and quality of local materials and intermediate products.

Organizational And Cultural Differences

The evidences suggest that, because of differences in organizational cultures, it is often more difficult for MNEs successfully to transfer unadapted soft technologies across national boundaries. Thus, the willingness and ability of country to reconcile the need to adopt its culture to meet the changing needs of world markets and the speed with which it can do so is itself a competitive advantage.