Globalization and organizational restructuring: A strategic perspective

Abstract

Abstract The new market opportunities, competitive threats, and diffusion of business models associated with globalization have been key drivers of organizational restructuring over the past decade. Companies have responded to these developments in a variety of ways with the objective of improving their cost and/or revenue structures through reorganizing their vertical, horizontal, and spatial boundaries and governance mechanisms. Major forms of restructuring at the business level have included labor intensification, investment in new technologies, downsizing and reengineering, the formation of strategic alliances and networks, spatial reconfiguration, and a shift from international and multinational to global and transnational strategies. To be most effective, any type of restructuring must be clearly and explicitly aligned with a firm's business‐level strategy in order to maximize the efficient and effective allocation of resources in pursuit of competitive advantage. A strategic use of restructuring which links such efforts to broader competitive strategy, and where possible to a “high‐road” approach to overall competitiveness, should result in more sustainable benefits which generate increased value‐added to shareholders as well as greater well being in the broader stakeholder community. © 2002 Wiley Periodicals, Inc.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 41 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.