By Pavlos Dimitratos, Marian V. Jones (eds.)

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We hope that this work will provide a basis for research that develops new insights into the complex decisions associated with the management of MNCs’ collections of foreign and domestic subsidiaries. A. (1983) ‘MNCs: Get off the reorganization merry-round’, Harvard Business Review, 61(2), 138–46. A. and Ghoshal, S. (1989) Managing across Borders: The Transnational Solution, 2nd ed. (Boston: Harvard Business School Press). 26 Kiyohiko Ito, Elizabeth L. G. (1997) ‘Divestment of foreign production operations’, Applied Economics, 29(10), 1365–77.

Building on this foundation, researchers, including Bartlett (1983), Daniels, Pitts, and Tretter (1984), Egelhoff (1988), Analysis of Global Integration 15 and Hedlund (1993), have studied various aspects of the interaction between structure and management processes in MNCs. Focusing more on the nature of foreign operations and the relationship between an MNC’s headquarters and its international subsidiaries, Perlmutter (1969) defined multinationality in terms of managers’ mind-sets, identifying three orientations: ethnocentric (home country focus), polycentric (host country focus), and geocentric (integrated world perspective).

Moreover, because all the joint actions between channel partners are information-intensive, online virtual integration can increase information visibility within supply chain relationships and thus improve all relevant coordination activities (Kim et al. 2006; Wang et al. 2006). Both coordination and information visibility-enhancing effects of virtual integration The Role of Virtual Integration 31 (Yamin and Sinkovics, 2007) can help suppliers to achieve more adaptive and flexible relationships with their international customers.

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