The Influence of Economic Geography on Transnational Organizations

Economic geography research leans toward identifying the effect of the organization on the local and regional economic development; not the effect of regional economics on the organization’s structure.  However, based on Bartlett and Ghoshal’s (1989) organizational structure models, the transnational model for multinational organizations invites the transfer of practices to, from, and within the affiliates.  Parent organization and subsidiaries are aware of their own role as well as the role of others (Nirav, 2012).  With the transfer of practices and roles, the structure may be influenced by the economic geography of the region; thereby, creating differences and tensions between the home office and host country locations.  The objective is to identify practices (1) within the economic geographies of the multinational organization and (2) their effect, if any, on the transnational structure.