Supply Chain Governance and Multinational Corporations' Governance - a Theoretical Comparison (original) (raw)

Polish journal of management studies, 2012

Abstract

Globalization is measured by the number of countries where companies have subsidiaries. Being present on different markets, owning manufacturing capabilities in countries with inexpensive labor force or ensuring the direct supply of raw materials are decisions made by all companies which consider the expansion and the power of their business. The goal of this article is to discuss about choosing the best alternative for expansion if governance mechanisms are considered. Two alternatives exist: one is to expand by acquisition; the other is to enter another country through partnerships. Considering simple corporate governance, both alternatives contain supplementary elements, creating in this manner more complex environments. Multinational companies (MNCs) add to the simple - domestic corporate governance the next elements: multi-national governance systems characteristics and forms of expansion, but also local business cultures. Supply chain governance contains the elements presented...

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