1University of Wisconsin — Whitewater, Management Department, College of Business and Economics, Whitewater, WI 53190, USA.
2Loyola University Chicago, Management Department, 820 North Michigan Avenue, Chicago, IL 60611, USA.
3Seidman School of Business, Grand Valley State University, Grand Rapid, MI 49504, USA.
Multinational corporations are redesigning their organizational structure from a hierarchic multi-domestic structure into a global network. Using the contingency theory framework, we identify the reasons for this change, optimal structures and the potential cost/benefits to be expected. In addition, we also indicate how supply chains learn and adapt to the dynamic global environment. These findings can help practitioners gain a better understanding of international supply chains and provide a theoretical model for academicians to conduct future studies.
contingency theory, international operations, material and information flows
