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What is Multinational Corporation

Encyclopedia of Information Science and Technology, Second Edition
A firm that has operations in multiple countries.
Published in Chapter:
Cross-Cultural Research in MIS
Elena Karahanna (University of Georgia, USA), Roberto Evaristo (University of Illinois, USA), and Mark Srite (University of Wisconsin, USA)
DOI: 10.4018/978-1-60566-026-4.ch137
Abstract
“Globalization of business highlights the need to understand the management of organizations that span different nations and cultures” (Srite et al., 2003, p. 31). In these multinational and transcultural organizations, there is a growing call for utilizing information technology (IT) to achieve efficiencies, coordination, and communication. However, cultural differences between countries may have an impact on the effectiveness and efficiency of IT deployment. Despite its importance, the effect of cultural factors has received limited attention from information systems’ (IS) researchers. In a review of cross-cultural research specifically focused on the MIS area (Evaristo, Karahanna, & Srite, 2000), a very limited number of studies were found that could be classi- fied as cross-cultural. Additionally, even though many of the studies found provided useful insights, raised interesting questions, and generally contributed toward the advancement of the state of the art in its field, with few exceptions, no study specifically addressed equivalency issues central to measurement in cross-cultural research. It is this methodological issue of equivalency that is the focus of this article.
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A corporate organization that owns or controls production of goods or services in at least one country other than its home country.
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Any corporation that is registered and operates in more than one country at a time. Generally, the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries.
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When the company makes progress on internationalization to the extent that leads to foreign direct investment (FDI), it acquires a multinational character.
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