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| Author: | Rutenberg, D. |
| Title: | International operations management |
| Journal: | Journal of Business Administration
1992 : /93, VOL. 21:1-2, p. 191-203 |
| Index terms: | MULTINATIONAL COMPANIES ORGANIZATIONAL LEARNING PLANT LOCATION |
| Language: | eng |
| Abstract: | Multinational corporations can locate production either in countries where the competition is the most intensive so that competitors and customers will drive the pace of their organizational learning, which steepen the slope of their experience curve; or in countries where factor costs are lower. In this case they have to realize that their managers will have to drive the pace of learning. If a multinational is large enough to have two plants for a poduct, it should locate them in quite different nations - the low unit cost plant where factor costs are low, the flexible plant where the learning opportunities are high. Linking the two plants requires a management that is capable to absorb, codify and diffuse that learning. |
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