Question

What are some of the advantages and disadvantages of the transnational approach advocated by Bartlett and Ghoshal?

Answer 1

Bartlett and Ghoshal advocates transnational approach: So in this approach they encourages the resources and skills anywhere in firm can be leveraged to exploit opportunities in any geographic market. For this following could be requirement for smoothly and effecting implementation of transnational approach:

• Reciprocal interdependence among divisions
• Strong integrating mechanisms such as personnel rotation, division-spanning teams, etc.
• Balance in organisational identity between national brands and global image.

There could be following advantages of Bartlett and Ghoshal's transnational approach:

• It utilises the best of both centralised and decentralised structures for supporting innovation activities.
• Access to diverse information and resources.
• Ability to take advantage of the diverse ideas and resources created in global markets.
• It ensures standardisation and implementation throughout a company.

There could be following disadvantages of Bartlett and Ghoshal's transnational approach:

• Need Constantly balance the resources of the organisation such as moving the employees around global market to ensure best combination of centralisation and decentralisation.
• Moving employees and changing structure could be costly and expensive.