Organizing for dual strategies of product diversity and international expansion

Abstract

This study examines organization structures of 37 large U.S. multinationals which are both highly diverse and heavily involved abroad. The findings show that the international division is still the most popular structure for this form of enterprise. However, Several other structures are also found to be in common use. An attempt is made to relate use of these structures to such strategic variables as extent of vertical integration, R & D intensity, level of foreign sales and method of diversifying.