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B R I E F C O N T E N T S
Preface xix
About the Authors xxvii
part one Foundations of Multinational Management 1

1 Multinational Management in a Changing World 2
2 Culture and Multinational Management 43
3 The Institutional Context of Multinational Management 90
4 Managing Ethical and Social Responsibility Challenges in Multinational Companies 125
part two Strategy Content and Formulation for Multinational

Companies 179
5 Strategic Management in the Multinational Company: Content and Formulation 180
6 Multinational and Entry-Mode Strategies: Content and Formulation 215
7 Small Businesses and International Entrepreneurship: Overcoming Barriers and Finding
Opportunities 254
part three Management Processes in Strategy Implementation: Design

Choices for Multinational Companies 303
8 Organizational Designs for Multinational Companies 304
9 International Strategic Alliances: Design and Management 351
10 Multinational E-Commerce: Strategies and Structures 393
part four Strategy Implementation for Multinational Companies:

Human Resource Management 443
11 International Human Resource Management 444
12 HRM in the Local Context: Knowing When and How to Adapt 493
part five Strategy Implementation for Multinational Companies:

Interaction Processes 557
13 International Negotiation and Cross-Cultural Communication 558
14 Motivation in Multinational Companies 603
15 Leadership and Management Behavior in Multinational Companies 643
Glossary 701
Name Index 709
Subject Index 711
Company Index 733
vii
C O N T E N T S
Preface xix
About the Authors xxvii
part one Foundations of Multinational Management 1

1 MULTINATIONAL MANAGEMENT IN A CHANGING WORLD 2
The Nature of the Multinational Company 4
The Globalizing Economy: A Changing (but Not Always Stable) Environment for
Business 7
Countries of the World: The Arrived, the Coming, and the Struggling 7 /
Disintegrating Borders: The World Trade Organization and Free Trade
Areas 9 / Sell Anywhere, Locate Anywhere: Trade and Foreign Investment Are
Growing but Setbacks Are Part of the Challenge 14 / The Internet and
Information Technology Are Making It All Easier 16 / The Rise of Global
Products and Global Customers 17 / New Competitors Are Emerging 19 /
The Rise of Global Standards 20 / Corporate Social Responsibility and Business
Ethics 20
The Next Generation of Multinational Managers 22

Multinational Management: A Strategic Approach 24
CHAPTER CASE: Foreign Direct Investment in the Middle East: Riyadh and Dubai 28
2 CULTURE AND MULTINATIONAL MANAGEMENT 43

What Is Culture? 44
Levels of Culture 46
National Culture 46 / Business Culture 47 / Occupational Culture and
Organizational Culture 49 / Cultural Differences and Basic Values: Three
Diagnostic Models to Aid the Multinational Manager 51 / Hofstede’s Model of
National Culture 51 / Hofstede’s Cultural Model Applied to Organizations and
Management 52 / Power Distance 52 / Uncertainty Avoidance 53 /
Individualism/Collectivism 56 / Masculinity 57 / Long-Term Orientation 60
GLOBE National Culture Framework 64

7d Cultural Dimensions Model 65 / Universalism versus Particularism 68 /
Individualism versus Collectivism 69 / Neutral versus Affective 70 / Specific
versus Diffuse 71 / Achievement versus Ascription 71 / Time Orientation 73 /
Internal versus External Control 75
Caveats and Cautions 76

CHAPTER CASE: Jextra Neighbourhood Stores in Malaysia 84
3 THE INSTITUTIONAL CONTEXT OF MULTINATIONAL MANAGEMENT 90

Social Institutions and Their Influence on Society 92
Economic Systems 92 / Industrialization 97 / Religion 103 / Education 110
Social Inequality 113

CHAPTER CASE: Google in China 118
ix
x Contents
4 MANAGING ETHICAL AND SOCIAL RESPONSIBILITY CHALLENGES IN

MULTINATIONAL COMPANIES 125
What Are International Business Ethics and Social Responsibility? 128
Ethical Philosophy 130
Traditional Views 130 / Moral Languages 133
National Differences in Business Ethics and Social Responsibility 134

Questionable Payments and Bribery 136
Toward Transnational Ethics 140

Pressures for Ethical Convergence 142 / Prescriptive Ethics for the
Multinational 143
The Ethical Dilemma in Multinational Management: How Will You Decide? 144
Ethical Relativism versus Ethical Universalism 145 / Individual Ethical Decision
Making for the Multinational Manager 149
CHAPTER CASE: Ethics of Offshoring: Novo Nordisk and Clinical Trials in Emerging
Economies 157
PART ONE INTEGRATING CASE 1:
SHELL OIL IN NIGERIA 167
Introduction 167
A History of Corruption 168
Shell Operations in Nigeria 168
Ken Saro-Wiwa 169
Oil Spills 169
Bribery 170
Shell Today 171
Bibliography 171
PART ONE INTEGRATING CASE 2:
ORGANIZATIONAL AND NATIONAL CULTURES IN A POLISH–U.S. JOINT
VENTURE 173
Background 173
The U.S./Polish Company 173
Polish Attitudes Regarding U.S. Management 173

The Cultural Conflicts 174
Managerial Selection 174 / Merit, Age, and Seniority 174 / The Salary
System 175 / Team Goals 175 / The Psychological Contract 176 / Trust 176 /
Informality 177 / Positive Feedback on the Job 178
Conclusions 178
part two Strategy Content and Formulation for Multinational

Companies 179
5 STRATEGIC MANAGEMENT IN THE MULTINATIONAL COMPANY: CONTENT
AND FORMULATION 180
Basic Strategic Content Applied to the Multinational Company 181
Contents xi
Competitive Advantage and Multinational Applications of Generic Strategies

182 / Competitive Advantage and the Value Chain 185 / Distinctive
Competencies 187 / Sustaining Competitive Advantage 187 / Offensive and
Defensive Competitive Strategies in International Markets 188 / Multinational
Diversification Strategy 191 / Strategy Content: Brief Conclusions 192
Strategy Formulation: Traditional Approaches 194

Industry and Competitive Analyses 194 / Company-Situation Analysis 198 /
Corporate Strategy Selection 200
The National Context and Organizational Strategy: Overview and Observations 201
CHAPTER CASE: Harley-Davidson, Inc.: Troubled Times Increase H-D’s Reliance on
International Sales 204
6 MULTINATIONAL AND ENTRY-MODE STRATEGIES: CONTENT AND

FORMULATION 215
Multinational Strategies: Dealing with the Global-Local Dilemma 216
Multidomestic Strategy 217 / Transnational Strategy 217 / International
Strategy 221 / Regional Strategy 221 / A Brief Summary and Caveat 222
Resolving the Global-Local Dilemma: Formulating a Multinational Strategy 223

Global Markets 224 / Costs 224 / Governments 224 / Competition 225 /
Caution 225 / Transnational or International: Which Way for the Global Company?
225 / Entry-mode Strategies: The Content Options 227 / Exporting 227 /
Export Strategies 227 / Licensing 228 / Some Special Licensing Agreements
228 / International Strategic Alliances 230 / Foreign Direct Investment 230 /
Formulating an Entry-mode Strategy 231 / Basic Functions of Entry-mode
Strategies 232 / Entry-mode Strategies and Multinational Strategies 236
Political Risk 239

CHAPTER CASE: Polaris 2008 245
7 SMALL BUSINESSES AND INTERNATIONAL ENTREPRENEURSHIP: OVERCOMING

BARRIERS AND FINDING OPPORTUNITIES 254
What Is a Small Business? 255
Internationalization and the Small Business 256
The Small Business Stage Model of Internationalization 256 / Small Business
Global Start-Ups, or Born-Global Firms 257 / Small-Business E-Commerce 258
Overcoming Small Business Barriers to Internationalization 260

Developing a Small-Business Global Culture 262 / Changing Attitudes
of Key Decision Makers 263 / Gaining Experience: Duties and the Personal Life
of the Small-Business CEO 264 / Is Size a Barrier for Small Business
Internationalization? 264 / Using the Small Business Advantage 266 /
The Future: Falling Barriers to Multinational Small Businesses and
More Global Start-Ups 266
When Should a Small Business Go International? 267

Getting Connected to the International Market 270
Participation Strategies 270 / Finding Customers and Partners 270 / Ready to
Go and Connected: A Synopsis 272
xii Contents
New Venture Strategies for Small Multinational Companies 273

New Product or Service and First Mover Advantage 273 / Copycat
Businesses 273
International Entrepreneurship 274

CHAPTER CASE: Aregak Micro-Credit Organization in Armenia 281
PART TWO INTEGRATING CASE 1:
TATA MOTORS 285
Introduction 285
Domestic Economy 286
Governmental Initiation 286 / Demographic Shift in India 287 / Domestic
Automobile Industry 287
International Automobile Market 287

Global Automobile Trends 287
Tata Group 288

Tata Motors 288 / International Business Initiatives by Tata Motors
in 2004 288 / Organic Growth Strategies of Tata Motors 289 / Inorganic
Growth Planning of Tata Motors in 2004 289 / Positioning of Tata Motors in
the Global Markets 290 / Enhancing Capabilities: Partnering with World-Class
Players 290
PART TWO INTEGRATING CASE 2:
THE FLEET SHEET 292
Erik’s Education and Early Work Experience 292
The Move to Prague 293
The Situation in Eastern Europe 293
Origination of Idea for the Fleet Sheet 294
The Pricing Strategy 294
Marketing of the Fleet Sheet 295
Hurdles for the Business 298
Erik’s Dilemma 300
part three Management Processes in Strategy Implementation:

Design Choices for Multinational Companies 303
8 ORGANIZATIONAL DESIGNS FOR MULTINATIONAL COMPANIES 304
The Nature of Organizational Design 306
A Primer on Organizational Structures 306 / The Basic Functional Structure
307 / The Basic Product and Geographic Structures 307
Organizational Structures to Implement Multinational Strategies 309

The Export Department 309 / Foreign Subsidiaries 310 / Subsidiaries 311 /
International Division 313 / Worldwide Geographic Structure and Worldwide
Product Structure 313 / Hybrids and Worldwide Matrix Structures 318 /
The Transnational Network Structure 320
Beyond the Transnational: Is There a New Structure for the Multinational? 325
Multinational Strategy and Structure: An Overview 326
Contents xiii
Control and Coordination Systems 327 / Design Options for Control

Systems 328 / Design Options for Coordination Systems 330 / Teams 331
Knowledge Management 333

CHAPTER CASE: Managing Strategic Growth At Sjöland & Thyselius AB 339
9 INTERNATIONAL STRATEGIC ALLIANCES: DESIGN AND MANAGEMENT 351

Where to Link in the Value Chain 352
Choosing a Partner: The Most Important Choice? 355
Choosing an Alliance Type 360
Informal and Formal International Cooperative Alliances 360 / International
Joint Ventures 361
Negotiating the Agreement 362

Building the Organization: Organizational Design in Strategic Alliances 363
Decision-Making Control 363 / Management Structures 363 / Choosing a
Strategic Alliance Management Structure 364
Commitment and Trust: The Soft Side of Alliance Management 366

The Importance of Commitment and Trust 366 / Building and Sustaining Trust
and Commitment 367
Assessing the Performance of an International Strategic Alliance 369

If the Alliance Does Not Work 371
Learning to Partner: Building a Dedicated Strategic Alliance Unit and Key Lessons
from Cross-Border Alliances 373
CHAPTER CASE: Tata Motors and Fiat Auto: Joining Forces 377
10 MULTINATIONAL E-COMMERCE: STRATEGIES AND STRUCTURES 393

The Internet Economy 394
What Is E-Commerce? 394
Fundamentals of E-Commerce Strategy and Structure 399

Steps for a Successful E-Commerce Strategy 400 / E-Commerce Structure:
Integrated or Autonomous 402 / Additional Operational Challenges for an
E-Commerce Business 403 / Globalizing Through the Internet 407 /
Multinational E-Commerce Strategy Formulation: The Nature of the Business
408 / Basic Opportunities and Threats of Multinational E-Commerce 408 /
Picking a Market 409 / Multinational E-Commerce Strategy Implementation
411 / The Multinational E-Commerce Organization 411 / Technical Capabilities
and Implementation Options for Multinational E-Commerce 412 / Websites:
Localize or Standardize? 413 / To Build or Outsource Technical Capabilities? 415
CHAPTER CASE: Yumcha.Com.AU 419

PART THREE INTEGRATING CASE 1:
TRANSITION AT WHIRLPOOL TATRAMAT: FROM JOINT VENTURE TO
ACQUISITION 428
The Joint Venture Partners 428
Whirlpool Corporation 428 / Tatramat 429
Motivations for an Alliance Between Whirlpool Europe B.V. and Tatramat 432
xiv Contents
Strategic Options for Whirlpool 432 / Strategic Options for Tatramat 433 /
Form of the Deal 433
Anatomy of the Deal: Main Problems and Outcomes 433

Operational Issues 436
Reasons for the Takeover of the Joint Venture by Whirlpool 437
Factors of Success at Whirlpool Slovakia 438
A Manager’s Point of View 438 / A Broader Approach to Success Factors 439
The Performance of the Slovak Parent Company 439

Conclusions 440
Epilogue: Whirlpool Slovakia in the New Century 441
part four Strategy Implementation for Multinational Companies:

Human Resource Management 443
11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT 444
International Human Resource Management Defined 445
International Human Resource Management and International Employees 445 /
Types of Employees in Multinational Organizations 445
Multinational Managers: Expatriate or the Host Country 446

Is the Expatriate Worth It? 447
The Expatriate Manager 452

Selecting Expatriate Managers 452 / Training and Development 457 /
Performance Appraisal for the Expatriate 458 / Expatriate Compensation
462 / The Balance Sheet Approach 463 / Other Approaches 463 / The
Repatriation Problem 465
International Assignments for Women 466

What Can Companies Do to Ensure Female Expatriate Success? 469
Multinational Strategy and IHRM 470
IHRM Orientations 471 / Ethnocentric IHRM Orientation 471 / Regiocentric
and Polycentric IHRM Orientations 473 / Global IHRM Orientations 474
CHAPTER CASE: People Management Fiasco in Honda Motorcycles

and Scooters India Ltd. 480
12 HRM IN THE LOCAL CONTEXT: KNOWING WHEN AND HOW TO ADAPT 493
Why Do Nations Differ in HRM? 494
Recruitment 499
Recruitment in the United States 500
Recruitment 502
Selection 504
Selection in the United States 504 / Selection in Collectivist Cultures 505
Implications for the Multinational: Recruitment and Selection 507

Training and Development 508
Contents xv
Training and Development in the United States 509 / Training and Vocational
Education in Germany 510
Implications for the Multinational: Training and Development 514

Performance Appraisal 514
Performance Appraisal in the United States 515 / Performance Appraisals
around the World 515
Compensation 518
Compensation Practices in the United States 519 / Compensation around the
World 520 / Compensation in Japan 521
Implications for the Multinational: Performance Evaluation and Compensation 523

A Comparative View of Labor Relations 524
Union Membership Density 524 / Some Historical and Institutional
Differences 526 / Union Structures 529 / Implications for the Multinational:
The Search for Harmony 531
CHAPTER CASE: People Management, The Mantra for Success: The Case
of Singhania and Partners 536
PART FOUR INTEGRATING CASE 1:
CISCO SWITCHES IN CHINA: THE YEAR OF THE MANAGER 541
China Opens Its Doors, and the United States Becomes a Guest 542
Don’t Apply Unless You Fly 542
CRDC Governance 543
Looking West for Guidance 544
Finding that First Project 545
Space Shot 546
New to This Market Economy 548
Pay and Promotion 549
Looking for Local Talent 550
Looking for Local Managers 553
Building Local Management 553
Working for the Man 554
Patience and Persistence 555
Should Jasmine Zhou run the SW development team? 555 / How should he
advise Ehud Oentung? 555 / How should he handle a recent e-mail situation?
556
part five Strategy Implementation for Multinational Companies:

Interaction Processes 557
13 INTERNATIONAL NEGOTIATION AND CROSS-CULTURAL COMMUNICATION 558
The Basics of Cross-Cultural Communication 559
Language and Culture 560 / High- and Low-Context Languages 560 / Basic
Communication Styles 562 / Nonverbal Communication 564 / Kinesics 565 /
Proxemics 566 / Haptics or Touching, Oculesics, and Olfactics 566 / Practical
Issues in Cross-Cultural Business Communication 567 / Using Interpreters
568 / Communication with Nonnative Speakers 569
International Negotiation 570
xvi Contents
Steps in International Negotiations 570 / Step 1: Preparation 570 / Step 2:

Building the Relationship 576 / Step 3: Exchanging Information and the First
Offer 578 / Step 4: Persuasion 579 / Steps 5 and 6: Concessions and
Agreement 584 / Basic Negotiating Strategies 586 / Step 7: Postagreement 586
The Successful International Negotiator: Personal Characteristics 589

CHAPTER CASE: Cross-Cultural Negotiation: Americans Negotiating
a Contract in China 594
14 MOTIVATION IN MULTINATIONAL COMPANIES 603

Work Values and the Meaning of Work 604
How Important Is Work in People’s Lives? 604 / What Do People
Value in Work? 606
Work Motivation and National Context 611

The Basic Work Motivation Process 611
National Context and Work Motivation: A Brief Introduction 614

Theories of Work Motivation in the Multinational Context 614
The Need Theory of Motivation 615 / Process and Reinforcement Theories of
Motivation 622 / Motivation and Job Design: U.S. and European Perspectives 631
Choosing Job Enrichment Techniques in Multinational Settings 634

CHAPTER CASE: Wipro Technologies Europe (B) 639
15 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL

COMPANIES 643
Global Leadership: The New Breed 646
Three Classic Models: A Vocabulary of Leadership 647
Leadership Traits 647 / Leadership Behaviors 648 / Contingency Theories
651 / Traits, Behaviors, and Contingencies 654
National Context as a Contingency for Leadership Behaviors 655

The National-Context Contingency Model of Leadership: An Overview 655 /
Leadership Traits and Behaviors in National Context 657 / National Context and
Preferred Leader Influence Tactics 663 / National Context and Subordinates’
Expectations 663
Contemporary Leadership Perspectives: Multinational Implications 666

Transformational Leadership 666 / Attributions and Leadership 667
Getting Results: Should You Do What Works at Home? 668

The Cultural Context and Suggested
Leadership Styles 670
CHAPTER CASE: Cheung Yan: China’s Paper Queen 675

PART FIVE INTEGRATING CASE 1:
THE BAMÍNICA POWER PLANT PROJECT: WHAT WENT WRONG AND
WHAT CAN BE LEARNED 684
PowerGen 684
Contents xvii
Electricity Supply in Bamínica 685

Overview of the Bamínica Project 685
Project Initiation 686
The Partnership Agreement 688
Partnership Details 689
Site Selection 690

Construction 691
The Project Start-up 691
Financing 692
The CBE Does Not Pay 693
Settlement with the Contractors and New Problems 694
Richard Jones’s Ownership Is Reduced 695
Management 695
Community Relations 696
Hotel Claims 697
The Project in 2011 698
PART FIVE INTEGRATING CASE 2:
OLD CORPORATE WAYS FADE AS NEW KOREAN GENERATION ASSERTS
ITSELF 699
GLOSSARY 701
NAME INDEX 709
SUBJECT INDEX 711
COMPANY INDEX 733
P R E F A C E
D
efining the nature of today’s business are the globalization of markets,
financial institutions, and companies; the growing importance of the
emerging markets of Brazil, China, India, and Russia (the BRIC mar-
kets) and other markets in the continent of Africa; and the global
impact of financial crises, wars, terrorism, and even disease. Developing and mak-
ing strategic choices are the mainstays of successful decision making in this increas-
ingly complex global environment. To help students develop the essential skills
needed to formulate and implement successful strategic moves in the new compet-
itive and interlaced global environment, this sixth edition of Multinational Manage-
ment: A Strategic Approach continues its tradition of providing a thorough review and
analysis of the latest research on international management. In addition, by using
a strategic perspective as a unifying theme to explore the global economy and the
impact of managerial decisions, we bring a distinctive method to the teaching and
learning of international management. This text was the first international man-
agement text to use this critical emphasis on strategic decision making as the cor-
nerstone of its approach, and each subsequent edition has built on this tradition.
After reading this text, students will understand that successful multinational
managers view the world as an integrated market where competition and collabora-
tion evolve from almost anywhere and anyone. At the same time, these future man-
agers must appreciate the wide array of differences that exist in cultures and social
institutions. This text considers how cultural differences affect strategies and opera-
tions and gives the student an appreciation of how social institutions such as the eco-
nomic system, the polity, the educational system, and religion play an important role
in any multinational operation. As such, the reader is not limited to understanding
multinational management from the perspective of any one nation or group.
New to This Edition

The entire text has been updated to reflect current research and examples from
the field of international management. All chapters have new boxed features to
reflect the latest trends. Additionally, most of the statistics reported in the chapters
reflect the latest numbers. Many of the updates pertain to the opportunities pre-
sented by the emerging markets such as Brazil, China, India, and Russia, and the
text recognizes the emergence of the class of emerging market competitors.
Furthermore, the text recognizes the impressive progress made by nations in the
African continent. It also acknowledges the growth of state-owned enterprises.
Finally, chapters were written keeping in mind the current economic crisis, while
acknowledging that, as most experts predict, emerging markets will recover much
more quickly than developed nations.
Among many changes, some specific revisions to the text material include the
following:
New Cases
All chapters and each major section of the text have their own cases with specific
case-based discussion questions. Around 30 percent of the cases are new to this
edition. Case topics reflect the current global environment and cover most of the
world’s continents.
xix
xx Preface
• Some cases pertain to companies operating in the world’s biggest as well as

emerging markets, such as India, China, and Malaysia. One case deals with
Tata Motors in India, providing valuable insights into the Indian markets and
the emergence of this potential world competitor.
• Cases include companies in the Czech Republic and Poland to reflect the chal-
lenges faced as these countries transition to market-based economies.
• Cases on Asian economies, such as South Korea and Japan, illustrate some of
the difficulties encountered as these countries deal with an environment that
is counter to collectivist values.
• The case on Kimberly-Clark in Latin American illustrates some of the unique
challenges multinationals experience in this region of the world.
• Other cases, such as Google in China and Alibaba versus Yahoo, reflect some of
the challenges and the opportunities of e-commerce strategies.
• Many new cases on international ethics and corporate social responsibility (e.g.,
Yahoo and Customer Privacy, Procter and Gamble and Safe Drinking Water,
Micro-credit in Armenia) have been added to reflect the increasingly crucial
importance of this area.
• The text now features a new case on the Middle East to reflect the growing
importance of the region to global trade. Case material pertaining to Nigeria
has also been included.
• Case material on Europe and Canada show that these places also represent
particular difficulties for multinationals.
New Topical Areas

All chapters include the latest developments in the international management
field.
• Chapter 1—Multinational Management in a Changing World has been thoroughly
updated to reflect the latest trends in the field. A significant emphasis in the
chapter pertains to the emergence of powerful new competitors from emerging
markets. The chapter details the reasons why these new competitors are emerg-
ing and how they are drastically influencing strategies of the well-established mul-
tinationals. The chapter also recognizes the growing emergence of state-owned
companies and their influence on the global business environment.
• Chapter 2—Culture and Multinational Management has been updated and remains
one of the most balanced presentations of culture, including the popular
Hofstede framework and the most recent GLOBE framework. The implications
of each cultural dimension for management functions such as leadership styles,
HRM, etc., are clearly summarized through figures. Readers are also alerted to
the dangers of relying too much on culture.
• Chapter 3—The Institutional Context of Multinational Management has been
updated and now emphasizes important information on social inequality and
its impact on multinational management. The chapter also presents a balanced
overview of the world’s main religions, underscoring the importance of religion
to the global business environment.
• Chapter 6—Multinational and Entry-mode Strategies: Content and Formulation now
emphasizes the section on political risk and what companies can do to mitigate
Preface xxi
it. The chapter includes more discussion of the new emerging market
competitors.
• Chapter 7—Small Businesses and International Entrepreneurship has also been
updated to reflect the sustained importance of the topic to international manage-
ment. Students will read about potential barriers faced by small businesses as they
go global. However, the chapter also discusses the many benefits small businesses
may gain by going international. This text remains one of the few on the market
to acknowledge the growing importance of international entrepreneurship.
• Chapter 8—Organizational Designs for Multinational Companies continues the
extensive discussion of knowledge management, adding a timely and interesting
topic to the traditional discussion of multinational organizational structures.
This reflects the growing importance to multinationals of knowledge management
systems.
• Chapter 10—Multinational E-Commerce: Strategies and Structures is included in this
sixth edition making it one of the only texts with a chapter on this important
topic. More detail is now provided on the growing importance of multinational
e-commerce security and the many aspects of IT security. The latest figures and
statistics on e-commerce are discussed providing evidence of the sustained
growth of the sector.
• Chapters 11 and 12—International Human Resource Management continues the
strong tradition of considering human resource management issues for both
expatriates and other employees. Special emphasis is placed on emerging
markets and the more sustained difficulty of finding and retaining qualified
workers.
• Chapter 15—Leadership and Management Behavior in Multinational Companies
continues the examination of leadership in a global context and integrates the
latest GLOBE research on leadership in over 60 nations.
Current Data
All chapters have been updated to include the latest research, examples, and
statistics in multinational management, creating the most accurate and current
presentation possible:
• Current multinational management examples in the Case in Point and other
chapter features, including Multinational Management Briefs, Multinational
Management Challenges, and Multinational Management Skill Builders.
• Updated tables and figures using recent findings on multinational leadership
from GLOBE: The Global Leadership and Organizational Behavior Effectiveness
Research Program.
• Updated tables and figures using recent findings on organizational behavior
issues from the World Values Survey and the International Social Survey Program.
• Updated tables and figures using recent publications from the latest World
Bank’s World Trade Report, other critical information from the United Nations
Conference on Trade and Development (UNCTAD), and the United Nation’s
World Investment Report.
• Prepublication information from the authors’ own research on the effects of
social institutions on work values and international recruiting.
• A large selection of new cases.
xxii Preface
Pedagogical Approach
In addition to providing a thorough review and analysis of multinational manage-
ment, Multinational Management: A Strategic Approach, sixth edition, includes several
unique pedagogical learning tools:
• Strategic viewpoint: This viewpoint provides a unifying theme that guides the
reader through the material. It highlights for students the process that multina-
tional companies engage in when deciding to compete in the global economy
and the management consequences of these strategic choices.
• Comparative management issues: Multinational managers must understand the
strengths, weaknesses, and strategies of competitors from anywhere in the
world. In addition, they must know when and how to adapt their organizational
practices to accommodate local situations. Where relevant, the comparative sec-
tions of the text assist students in understanding the complexities of the cul-
tures and business practices of other nations.
• Review of management principles: The text contains several chapters that assume
some background knowledge in management, specifically strategic manage-
ment, organizational design, human resource management, and organizational
behavior. For students with limited previous coursework in management, or for
those who need a review, each chapter provides background primers with brief
explanations of key concepts and ideas.
• Small business and entrepreneurship applications: Unlike most international man-
agement texts, this book explains the multinational activities of small busi-
nesses. An entire chapter focuses specifically on the problems and prospects
for entrepreneurs and small businesses looking to become multinational
competitors.
• Application based: Each chapter gives the learner three different opportunities
to apply the knowledge gained from reading the chapter: Multinational
Management Skill Builders, chapter Internet Activities (located on the book’s
website, www.cengage.com/management/cullen), and end-of-chapter cases.
These exercises simulate the challenges that practicing multinational managers
encounter on the job.
Key Features
• Chapter Cases and Multinational Management Skill Builders: End-of-chapter
projects include cases and activities, which give the learner the opportunity to
apply the text material to real-life managerial problems.
• Multinational Management Internet Exercise: For this sixth edition, we have added
a new feature to take advantage of the wealth of resources available on the
Internet. For each chapter, students will now have the option of researching a
website relevant to the chapter and reporting the latest findings to the class.
This will encourage students to explore the wealth of resources on the Web
while at the same time learning about the most recent data.
• Integrating Cases: Each major section offers at least one full-length case that
requires the integration of material from all preceding chapters. These cases
were chosen to challenge the reader with the complexities of the global
environment.
Preface xxiii
• Extensive examples: Throughout the text, many examples enhance the text mate-
rial by showing actual multinational management situations. These examples
are illustrated in six different formats:
• Preview Case in Point: These brief cases open each chapter and focus the
reader’s interest on the chapter content.
• Focus on Emerging Markets: This edition strengthens a feature that was intro-
duced in the fourth edition focusing on the growing importance of the
BRIC emerging markets in Asia, Latin America, and Europe. Each chapter
discusses the many opportunities and threats presented by emerging markets
in the context of the chapter. Furthermore, many of these examples empha-
size the two dominant emerging markets, India and China.
• Case in Point: These real-life examples of multinational companies discuss rel-
evant topics in each chapter.
• Multinational Management Challenge: These cases explore challenging situa-
tions faced by multinational managers in actual companies and situations.
• Multinational Management Brief: Brief examples elaborate on an issue discussed
in the text.
• Comparative Management Brief: These examples show how a unique cultural or
social institutional setting can influence management decisions.
• Models as examples: The authors created numerous models to act as visual aids
for students as they study key principles.
• Learning aids: The Multinational Management Electronic Study Tools for
students, product support website, and supporting video make learning easy and
fun while exposing the learner to the complex issues of multinational manage-
ment. In addition, included on the product support website are Internet Activities
that challenge students to use Internet resources in locating international business
information. The Web site also contains an extensive selection of Internet links to
resources and information that are updated regularly.
Contents
The text is structured into five major parts. Part One is divided into four chapters:
three introductory chapters that provide essential background on the nature of
multinational management and a fourth on international ethics. These chapters
address the challenges facing managers in the new global economy, how national
cultures affect management, the institutional context of multinational companies,
and the ethical challenges these firms encounter.
Part Two includes three chapters that review how multinational companies formu-
late successful strategies to compete internationally. Chapter 5 provides a broad over-
view of strategic management with global implications. Chapter 6 focuses on the
strategies required to “go international.” Chapter 7 applies the concepts from the previ-
ous two chapters to the unique problems faced by small, entrepreneurial organizations.
Part Three addresses the management systems used to implement multinational
strategies. Specifically, Chapter 8 considers how multinational companies design
and structure their organizations to implement their strategies. Chapter 9 examines
the management and design issues involved in building global strategic alliances.
Chapter 10 considers how companies can use e-commerce in multinational
operations.
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effective use of the cold yet brilliant tone of the pianoforte in
combination with the various warmer tones of the orchestra, he may
be said to have set a standard of excellence which subsequent
concertos have oftener fallen short of than attained. Hundreds have
been written. The fingers of one hand might perhaps count the
number of those which as works of art are comparable to Mozart’s.
It must be admitted that Mozart was not equally inspired in all his
concertos. That in D major (K. 537), composed in 1788 and known
as the ‘Coronation Concerto,’ savors unpleasantly of the pièce
d’occasion. The themes of the first movement are almost ludicrously
commonplace. Those of the Larghetto are hardly more distinguished,
and the last movement can be recommended for little more than
brilliance. The concertos in D minor (K. 466) and in C minor (K. 491)
are, on the contrary, inspired throughout. That in A major (K. 488)
one might well be tempted to call the most charming of Mozart’s
pianoforte compositions, but that such distinctions are gratuitous and
unpleasant. The second theme of the first movement is surely one of
the loveliest in all music. The last movement is irresistibly charming,
with the sparkle of sunshine on laughing water. The andante
between the first and last is of that sort of music which words cannot
describe. Indeed there is in all of Mozart’s music, as we have said, a
self-sufficient vitality which makes it a perfect satisfaction for the ear.
One does not feel stirred to seek a meaning beneath it. It is almost
natural music. There is nothing labored, nothing symbolic; and it is
almost uniquely beautiful. Surely, as far as pianoforte music is
concerned we shall wait nearly half a century before that abstract
grace again appears, this time in the works of Frédéric Chopin.
IV
The pianoforte sonatas of Beethoven hold an undisputed place in the
literature for that instrument. Whatever the future of music may be,
they can hardly be dethroned. They must always, it would seem,
represent the broadest, deepest and highest dimensions to which
the sonata can develop. Music which has since been written under
the name of sonata has been and will be compared with the sonatas
of Beethoven, has been and will be found wanting either in form, in
content or in the union of the two, by comparison with those of the
great master of Bonn. In the matter of musical value they may be
equalled, in many matters concerning the treatment of the pianoforte
they have been excelled; but as sonatas they will probably hold their
high place for ever, scarcely approached.
Improvements in the structure of the instrument itself have

something to do with their massiveness. The growth of the pianoforte
to serviceable maturity was a slow process, and not until Beethoven
was well advanced in years was he able to secure one which could
carry the burden that his powerful imagination would put upon it.
In the year 1711 Bartolomeo Cristofori, a Florentine, made the first

piano, that is to say, an instrument the strings of which were struck
by hammers operated by means of a keyboard. That the volume of
sound so produced would be soft or loud in accordance with the
pressure brought to bear on the keys by the player gave the
instrument its name—Piano(soft)-forte(loud). The harpsichord, it will
be remembered, did not offer the player such a chance for
expression and for the gradation of sound. The clavichord was
inferior to the new instrument in volume and resonance. However,
sixty years of experiment and invention were required to bring the
pianoforte to the point at which it began wholly to displace its
predecessors in the favor of composers and virtuosi.
Of the many difficulties which manufacturers had to overcome, only

a few need be mentioned. The most serious was the problem of
making a frame strong enough to resist the tension of the heavier
wire strings. This was met by tension bars, by metal braces, and
finally by the invention of a cast-iron frame, not, however, until after
Beethoven had ceased writing for the pianoforte. The problem of the
action was complicated by the necessity for the hammers to fall back
instantly from the strings as soon as they had struck them. This
falling back is known as the escapement, and it was chiefly by
devices of escapement that two great pianoforte actions came to be
differentiated from each other by the end of the eighteenth century.
These actions are known as the Viennese and the English.
With the former are associated the names of Stein and Streicher. It
was a light action and the tone of the Viennese pianos was
correspondingly light and fine. It had little volume and in melodies
was sweet and clear but not full. It was for such pianos that Haydn
and Mozart wrote their sonatas. Both men first acquired their
keyboard technique on the harpsichord, and later both naturally
adopted a piano the light action of which demanded approximately
the same sort of touch as that which they had already mastered. A
style of music developed from the nature of the instrument which
was little different from harpsichord music. Effects of fleetness and
delicacy marked it.
In 1777 Mozart had visited the Stein factories, then in Augsburg, and
had been much pleased by a device with which Stein’s pianos were
equipped: a lever, worked by the knee, which lifted the dampers from
all the strings at once, allowing them a fuller and richer vibration in
loud passages than was necessary in softer ones. This genouillière
soon gave way to the pedal which had been invented for the same
purpose by the English manufacturers. Pedal effects distinguish
pianoforte music from harpsichord music perhaps more than any
other feature. These are chiefly effects of sonority, of combining in
one relatively sustained mass of sound notes which lie far apart on
the keyboard, outside the span of the hand. These notes, of course,
cannot be struck together, but, when struck one after the other, can
be blended and sustained by means of the pedal. There must be
supposed in the pianoforte a tone which unaided will vibrate longer
after its string has been struck than the dry, short tone of the
harpsichord. Such a sustained, rich tone the Viennese pianos did not
have. They suggested but few possibilities in pedal effects to Haydn
and Mozart. For them the close spacing of harpsichord music was
natural. They ventured little in wide combinations, in sonorous
masses of sound.
Beethoven’s Broadwood Pianoforte.
From a drawing made on the day after his funeral.

The English action, on the other hand, was more resilient and more
powerful, the tone of the English pianos correspondingly fuller and
richer. The instruments at once suggested a range of effects quite
different from the harpsichord. Thus Clementi begins as early as
1770 to build up a new keyboard technique, demanding strength as
well as fleetness and lightness, using octaves, double notes, heavy
chords and wider and wider spacing. This becomes the new idea of
playing the piano. Mozart is judged by contemporaries who have
heard Clementi and his pupils, to have little technique, i.e. in the new
style. He is still a cembalist. Composers have a new power within
their control, the power to stir now by mere volume of sound, to do
more than please or amuse, to impress by power and breadth of
style. The piano becomes second in volume, in quick changing
variety and multiplicity of effects only to the orchestra. Sonatas
approach the symphony in depth and meaning. The ideas of the new
style are spread over Europe by Clementi and his disciples. The
great maker of pianofortes in Paris, Sebastian Érard, copies the
English action.
Beethoven grew up with the new idea of pianoforte music. The

pianoforte presented to him in Bonn by Graf Waldstein was probably
of the light-toned Viennese make; but as early as 1796 he came in
touch with English pianos on a concert trip to Berlin and other cities.
In 1803 he came into possession of an Érard, through the generosity
of one of his Viennese patrons, Prince Lichnowsky. It never wholly
pleased him. His wish was for one of the heavy sonorous English
pianos. In 1817 it was fulfilled. Thomas Broadwood sent him an
exceptionally powerful and fine one from his establishment in
London, in token of admiration. The Érard was given away, the last
colossal sonatas were composed. Even after this piano had outworn
its usefulness Beethoven kept it by him. Even after he received a
piano especially made for him by a Viennese maker named Graf,
strung with four strings to a note in consideration of his deafness, he
retained his Broadwood. Both were side by side in his room at the
Schwarzspanierhaus when he died.
III
Beethoven developed his technique with the aim of drawing the
utmost sonority and variety from the pianoforte. His demands on the
instrument were far beyond the capabilities of the Viennese pianos.
Streicher, who married Stein’s daughter and carried on the business
of the firm in Vienna, exerted his ingenuity constantly to improve his
pianos according to the demands of Beethoven, finally gave over the
ideal of lightness of action and of tone, largely through Beethoven’s
influence. Beethoven left the harpsichord far behind him. He
conceived his sonatas for an instrument of vastly greater
possibilities. He filled them with passages of chords, of double notes,
of powerful arpeggio figures surging from low registers to high, all
combined by the pedal, in the use of which he was a great innovator.
He refused allegiance to the old ideal of distinctness to which
Hummel, Mozart’s pupil, was still loyal, that he might be free when
he chose to deal with great masses of sound. The quality of his
genius has, of course, much to do with this; but the massiveness
which, among other things, distinguishes his pianoforte sonatas from
those of Mozart and Haydn is in no little measure due to a new idea
of the instrument, which had been born of the possibilities of the
English pianofortes, not inherited from the harpsichord. He
concerned himself with a new range of effects beyond the powers of
his two great predecessors. He found in the pianoforte an instrument
fit to express huge ideas and powerful emotions. Of such, therefore,
he was free to compose his sonatas.
Such works were not, we may be sure, written for the practice of his
pupils, as so many of Haydn’s and Mozart’s sonatas had been. Most
of them contained some measure of the outpouring of his own heart
and soul, sometimes not less tremendous than the content of his
symphonies. Each was to him in the nature of a great poem, an epic;
most have a distinct life and spirit of their own. Into this poetic life
must one plunge who would understand. There is a great mood to be
caught, an emotion, sometimes an idea. Beethoven thought deeply
about the meaning of his art. Colors of sound, intervals, rhythms,
qualities of melody, keys, all had for him a symbolism, sometimes
mysterious, sometimes definite. He regarded himself as a poet,
speaking a language more suggestive than words. In those who
listened to his music he expected an imagination quick to feel the life
in it, to respond to it, to interpret it. Countless anecdotes reveal the
close association Beethoven felt to exist between his music and the
world of nature, of human life, of the spirit rising in spite of fate. Most
are perhaps not to be relied upon. But scarcely less numerous are
the ‘interpretations’ of his music, written down for us by students, by
historians, by philosophic musicians; and all these, welcome or
unwelcome, must be taken as reactions to a poetic chemistry at work
in the music itself. The thing is there, and Beethoven was conscious
of having put it there.
He was intensely conscious of his individuality. He was proud of his

skill to reveal in music his emotions or his ideals. Little of such
aristocracy, in a broad sense, is evident in Haydn or Mozart. They
may seem to have taken themselves far less seriously. Beethoven
knew himself the high priest of a great art. He demanded from others
the respect due to such an one. His spirit rises majestic from his
music, or from a great part of it. It speaks in an unmistakable voice.
One listens to great stories, great epics, great tragedies, all part of
the life of a man of enormous vitality, enormous force. One hardly
listens as to music, rather as to a poet and a prophet.
Correspondingly, his music undergoes a development noticeably

parallel to the course of his life. The pianoforte sonatas alone are
nearly a complete record of the various phases through which his
character passed from young manhood almost to the time of his
death. They compose, as it were, a great book in many chapters. At
times one might regard them as a diary. Beethoven confided himself
to his piano.
He was a very great and an unusual player. His style was, as we

have inferred, wholly different from Mozart’s. To begin with, it was
much more varied. In the matter of runs alone one finds a deeper
appreciation of legato and staccato, and the shades between.
Mozart’s runs are oftenest of the ‘pearly’ variety, detached and
sparkling. Beethoven much more frequently than Mozart requires a
close, legato manner of playing. This, in the matter of scales, will
give them a sweep and curve, rather than a ripple, make them a rush
of sound, rather than a series of distinct notes; as, for example, the
short scale passages in the first movement of the sonata opus 7,
those for the left hand in the first movement of opus 78, and the long
scale passages at the end of the first movement of opus 53. In other
sorts of runs the legato execution which is required makes of them
almost a series of broken chords; as in the final movement of opus
26, in the first movement of the concerto in G major. Even where the
playing may be slightly staccato in style the pedal is employed to
give the runs more significance as harmonies than as series of
separated notes; as in the third variation of the middle movement in
the sonata opus 57, or the figures which build up the transitional
sections of the first movement of opus 110.
It is hardly to be denied, paradoxical as it may seem, that in many

ways Mozart seems to demand a careful legato touch even more
than Beethoven. That is perhaps because of the lighter texture of the
fabric. The pedal is of less help, the fingers must do more of
themselves. But the light runs which add so much to the charm of his
music stand apart from this. They are intended to stand out distinctly
in their separate notes. So, of course, are many in the sonatas of
Beethoven, and the use of the pedal itself is an art of expression, not
a makeshift to hide the clumsiness of fingers. The point of difference
is that Beethoven often writes series of notes which are effective as
a series; Mozart more often runs, the separate notes of which each
must sparkle with its own light.
With Beethoven, too, legato series of chords are frequent; in Haydn

and Mozart they hardly exist. Beethoven’s use of double notes and
chords is ahead of his time. Take the finale of the sonata in C major,
opus 3, No. 3, as a simple example. The staccato chord motive in
the last movement of opus 27, No. 2, the first movement of the G
major concerto, the first movement of opus 81, are but few examples
out of many that might be chosen.
But, above all, it is by the use of the pedal that Beethoven goes
ahead of his predecessors. The building up of great harmonies,
either by wide-ranging, rapid figures, or by massive chords piled one
on top of the other, was from the start characteristic of him. The trio
of the scherzo in the sonata in C major, number three of the first
published sonatas, offers a magnificent example, foreshadowing the
colossal effects of passages in the sonatas opus 53 and opus 57
and at the beginning of the huge concerto in E-flat major.
The extent to which he mastered the difficulties of the keyboard in

nearly all directions and his truly great inventiveness in pianistic
effects, have filled his works with sheer technical difficulties which
must ever task the skill of even the most remarkable virtuosi. He
demands velocity and strength in the fingers, great endurance and
power, flexibility of the wrist both in its usual up and down movement
and in its movement from side to side, a sure free use of the arm.
Skill in thirds and sixths, in octaves, in trills, double trills and even
triple trills, in wide skips, in repeated notes, all this and more he
demands of the player. It is ludicrous to think that certain
contemporaries denied him distinction as a pianist, largely because
he played according to no recognized method. As if any method of
that day or even this could be expected to limit hands that could play,
to say nothing of devise, such music as his!
He practically exhausted the resources of the pianoforte of his day.

Of this he was aware, and his ear, growing ever finer in its
appreciation of orchestral color, was at times tired of the limited
tones of this single instrument. He is reported to have said of it that it
is and remains an unsatisfactory instrument. At times he seems to
have written for it as he would write for the orchestra. In the first
movement of the ‘Waldstein’ sonata (opus 53) he actually wrote the
names of instruments over phrases which they might be fancied
playing. This one instance, together with passages which do not
seem quite suited to the nature of the piano, must not mislead us,
however, to judge the sonatas as orchestral rather than pianistic
music.
Beethoven was thoroughly familiar with his piano. The instrument
has been further improved since his day. Particularly the lower
registers have been given greater sonority, and the instrument as a
whole has gained much in sustaining power. Therefore it is inevitable
that certain passages which he conceived upon the Broadwood or
the Érard of 1820 or earlier are not wholly fitting to the modern piano.
This is especially true of passages in the lower registers. The
accompaniment to the noble second theme in the first movement of
the sonata opus 57 is, for example, unquestionably thick. It is too low
and muddy for the present-day piano. Many similar instances might
be mentioned, most of which, however, prove only that pianos have
changed. His frequent use of close accompaniment figures is
perhaps intrinsically old-fashioned; but, on the other hand, wider
figures would have been less sonorous on the piano he wrote for
than those he used. It is, however, in such matters that Beethoven’s
pianoforte music is, from one point of view, not entirely satisfactory to
the pianist of today. If in other respects it is at times seemingly
orchestral, if successive repetitions of the same phrase seem to tax
the pianoforte too far, that does not take from it all as a whole the
honor of being one of the greatest contributions to pure pianoforte
literature.
It was natural that Beethoven’s conception of music as an art akin to

poetry, conveying a more or less definite expression, should have
great influence upon the forms in which he wrote. The sonata filled
up enormously from his inspiration. To begin with, the triplex form
took on more and more dramatic life. The development is to be
noticed in several ways, some slower to make their appearance than
others. Almost at once the contrasting natures of the first and second
themes become apparent. Haydn, it will be remembered, often used
but a variant of the first theme for the second, much as Emanuel
Bach had done; but making his setting of the second theme far
clearer. Mozart used distinctly different themes, but both were, as a
rule, melodious, different in line but not in nature. On the other hand,
the first three sonatas of Beethoven show a complete differentiation
of the themes. The second and third are conspicuous and show a
procedure in the matter of themes from which Beethoven rarely
departed.
The first theme in the first movement of the sonata in A major, opus
2, No. 2, is positive in character, not lyric, not subtle, though in this
case humorous. It is assertive and not likely to undergo radical
change or development in the movement. That the first two
measures are squarely on notes of the tonic chord should not be
unobserved. The second theme is lyric, subtle, likely to change color
and form as it passes through the various phases in store for it. The
first and second themes of the next sonata may be characterized in
almost the same words. And this is likely to be the case in nearly all
movements in the triplex form which Beethoven will write. The first
theme is likely to be assertive and strong, the second to offer a
fundamental contrast in mood and style.
Both themes tend more and more to have a dramatic independence

and significance. The movement grows, as it were, out of the conflict
or the union of the two ideas which they express. A great vitality
spreads into the connecting passages between them. These
passages may develop from the nature of the first theme, as, for
instance, in the sonatas opus 13, opus 31, No. 2, and opus 53, or
they may present wholly new ideas often not less significant than the
themes themselves, as in opus 10, No. 3, and in opus 57. Similarly
the closing measures of the exposition take on a new meaning, as in
the last movement of opus 27, No. 2, and opus 31, No. 2.
In the early sonatas, where Beethoven is somewhat preoccupied

with the piano itself as a vehicle for the display of the pianist’s power,
these intermediate measures have little musical merit. Such
passages will be found in the first movements of opus 10, No. 3, and
opus 22, both rather ostensibly virtuoso music. In the later sonatas
such objective effectiveness is rare.
The development sections fill up with enormous vitality; and, finally,

there grows a coda at the end of the movement in which in many
cases the movement reaches its topmost height. In fact, Beethoven’s
treatment of the coda makes of the triplex form something almost
new. Where in classical form the movement might be expected to
cease, in the sonatas of Beethoven it will be found often to flow on
into a wholly fresh stanza, seeming at times the key or the fruition of
the movement as a whole. The wonderfully beautiful and long coda
at the end of the first movement of the sonata opus 81 is a superb
case in point.
The remaining movements of the sonatas expanded under the same

powerful imagination. Let one compare the variations which form the
slow movement of opus 10, No. 2, with those in the slow movement
of opus 106, or those which constitute the second and last
movement of the last sonata. In these later variations we find
something of the same change of the theme into various metaphors
as that found in the Goldberg Variations of Bach. It is not so much an
idea adorned as an idea expanded into countless new ideas. The
variations written for the publisher Diabelli on a waltz theme are
indeed exactly comparable to those of Bach.
To slow movements in song form or in triplex form he appended the

codas in the nature of an epilogue which added so much to the first
movements. The adagio of opus 10, No. 3, offers a fine example.
Frequently the slow movement led without pause into the next, more
frequently than in the sonatas of his predecessors.
The rondo took on a weight and significance to which it was scarcely

considered sufficient by the older masters. The rondo which is the
last movement of opus 53 is of huge proportions.
Beethoven frequently composed his sonatas in four movements,

following in this the model offered by the symphonies of his
predecessors. The added movement was descended from the
minuet. In some of the sonatas it still bears the name and occupies
its traditional place between the slow movement and the last
movement, notably in the sonatas opus 2, No. 1, and opus 10, No. 3.
In opus 2, No. 2, and opus 2, No. 3, the movement is called a
scherzo and has lost not its dance rhythm but its dance character. In
opus 31, No. 3, the scherzo has not even the triple rhythm which
usually distinguished it. It follows the first movement and is itself
followed by a minuet and a final rondo. In 106 it is again the second
movement, and in 110 can be recognized in spirit, without a name,
likewise as second movement. The scherzos introduce into the later
sonatas, as into the symphonies, a note of something between irony
and mystery, a strange development from the sunny dances of
Haydn; a sort of harsh echo of life in dense valleys from which
Beethoven has long since ascended.
And finally the fugue finds place in the scheme, sounding invariably
a note of triumph, as of the power of man’s will and the immutable
law of order in the universe.
Thus by extending the length of the various movements, by adding

distinct and significant themes in transitional and closing sections of
the triplex form, by incorporating additional movements in the sonata
group, by introducing forms like the scherzo and the fugue, which,
though they had been found in the suite, had been almost never
employed by the composers of sonatas, Beethoven enormously
expanded the sonata as a whole. But even more remarkable was the
tendency which showed itself relatively early to give a unity and
coherence to the group.
This was an inevitable result of Beethoven’s attitude towards music.

He felt himself, as we have said, a poet. His music was consciously
the expression of almost definite emotions, definite ideals. These by
reason of the nature of the man were of heroic proportions, finding
an adequate vehicle of expression only in music of broad and varied
design. The sonata offered in pianoforte music the possibilities of
such expression. The various movements afforded a chance for the
play, the contrast and change of moods great in themselves. The
length of the work as a whole predicated the widest possible limits. It
needed but ideas strong enough to dominate and fill these limits to
give to the group an organic life, to establish a close connection,
even a fundamental interdependence between the erstwhile
independent and separate movements.
Such ideas Beethoven did not at once bring to the sonata. Only the
last sonatas, beginning with opus 101, are truly so firmly knit or
welded that the individual movements are incomplete apart from the
whole, that the demarcation between them fades or does not exist at
all. In the first sonatas he is clearly preoccupied with expanding the
power of expression of the instrument, with technical problems, with
problems of form in the separate movements. The organic life which
is to mark the last sonatas is not a matter of external structure, of
thematic relationship. M. Vincent d’Indy points to the resemblance
between the first notes of the first theme of the final movement in
opus 13 and the second theme in the first movement of the same
sonata, as an indication of the tendency thus early evident in
Beethoven to give to the sonata group a consolidation more real
than a mere conventionally accepted arrangement. Even earlier
instances may be found of such resemblances in the thematic
material of the various movements. The theme of the rondo of opus
10, No. 3, may well have come from the second theme of the first
movement. Indeed, it is not hard to believe that in the very first of the
published sonatas, opus 2, No. 1, Beethoven employed a
modification of the opening theme of the first movement as basis for
a contrasting episode in the last.
But do such devices succeed in giving to a whole sonata an

indissoluble unity? Hardly. They may make of one movement a
sequel to a previous movement. Analogies may be found in the work
of the great novelists. Beatrice Esmond plays a part in ‘The
Virginians,’ but that does not necessarily mean that ‘Henry Esmond’
is incomplete as a work of art without the later novel. Brahms, it will
be remembered, worked studiously to construct a sequence of
movements from somewhat the same thematic material, notably in
the F-sharp minor pianoforte sonata and in his first symphony. But
more than such reminiscences or such recrudescences is necessary
to give to a group of movements the closely interdependent organic
life that we find in the later Beethoven sonatas. The movements of
the popular Sonata Pathétique have an independent and a complete
life of themselves. It is familiarity with the sequence in which
Beethoven arranged them that truly holds them together, the still
accepted ideal of a purely conventional arrangement.
Somewhat later Beethoven tried experiments which are more
significant. There are the two sonatas published as opus 27. Each is
a sonata quasi una fantasia,—in the manner of a fantasy. The first is
conspicuous by diversity or irregularity of form. It is not easy to
decide upon the limits of the various movements. A beautiful, long,
slow section is, as it were, engulfed by an impassioned short allegro
in C major, from which it emerges again almost unvaried. It comes to
a definite close, but the flash of the C major section across the
progress of the music has left an impression of incompleteness, has
destroyed, as it were, the equilibrium of the whole so far. The piece
is obviously still fragmentary, still indeterminate. More must come to
give us a satisfying sense of completeness. So we are propelled by
restlessness into another allegro, this time a much longer section,
more or less developed, in C minor, clearly a scherzo in character. It
is wild. We have been plunged into music that, far from fulfilling the
need of more that we felt after the opening sections, leaves us more
than ever unsatisfied. There follows a brief adagio, promising an
ultimate solution of all the mystery and uncertainty, seeming, by the
long trills and slowly descending single notes at the end, really to
introduce the satisfying order which must follow out of such chaos.
The final rondo is orderly and stable from the beginning. At the end
comes a repetition of phrases from the adagio, as to remind us of a
promise now fulfilled, and a lively little coda sends us away cheerful
and refreshed.
The nature of this music is such that up to the final rondo its various
sections must, if taken from the whole, affect us as being
fragmentary and unsatisfying. The work is more a fantasy than a
sonata. The triplex form is not to be found in it. But it is accepted as
a sonata, as is the previous one, opus 26, or Mozart’s sonata in A
major, beginning with a theme and variations; and the close
interdependence of its various sections, æsthetic if not thematic,
points unmistakably to the method of the last sonatas.
The movements of the sonata in C-sharp minor, opus 27, No. 2, are
from the point of view of form complete in themselves. Moreover, the
first and last movements are perfectly in triplex form. But this sonata,
too, is to be regarded, according to Beethoven himself, as in the
nature of a fantasy. This is because of the quality of improvisation
which pervades it all, which cannot be hidden even by the perfect
finish of the form. And the entire improvisation seems to be sprung of
one mood, the whole music related to one fundamental idea.
Whether or not it was inspired by the beautiful lady to whom it is
dedicated, for whom Beethoven had an apparently lasting though
vain passion, need not concern us. The music as it stands is full of
the deepest and most passionate feeling. The slow movement has a
great deal the nature of a prelude. Its lyric quality is passive; but it
sings of emotions which must assert themselves in active and more
violent self-expression. And so, passing under, as it were, the
shadowy ephemeral second movement which may veil but not
suppress them, they burst out in the last movement with the power of
a great storm.
Is the unity here merely one which great familiarity with the work as a
whole may account for? One can point to no logical incompleteness
in any one of the movements. Is their union in our mind essentially
one of association? It is more than that. There is a single emotion
underlying the work as a whole, which must seek further and
different utterance than the first movement affords it; which the
second movement may belie but not extinguish; to which only the
fantastic coda of the last movement gives ultimate release.
In both these sonatas there is a unity which cannot be destroyed. In

both, however, it is artistic rather than organic, and this may be said
of the subsequent sonatas up to opus 101. This, and the three
succeeding sonatas, seem almost to be musical dramas, more than
tone poems. They are huge allegories in music. The form which they
take is one which is built up note by note out of the conflict of vast
forces, natural or spiritual powers, rather than human emotions.
Three of them work up to great fugues. The other two, opus 109 and
opus 111, to towering series of variations.
One may take the sonata in A-flat, opus 110, for analysis. The first
movement, in very simple triplex form, is seemingly complete in
itself. Yet there is something mystical and visionary about it. The two
themes out of which it is constructed seem to float in the air; but
there is suggestion in the transitional sections and in the
development sections of inchoate forces in the deep. The whole
movement rather whispers than speaks. It is a mystery. There
follows immediately an allegro in F minor, a harsh presentment, as it
were, of human energy spent for naught. There are snatches of a
trivial, popular song; there is a trio made up of one long, down-hill
run, repeated over and over again, coming down only to be tossed
high again by a sharply accented chord; a restless agitation
throughout, ironical, even cynical. The end comes suddenly with
crashing chords out of time, and, finally, a quick breathing out, as if
the whole vanished in air. It is an extraordinary movement, seeming
instantaneous. One is amazed and bewildered after it.
Then comes a passage in the character of recitative. The whole

mood becomes intensely sorrowful, grief-stricken, tragic. A melody
full of anguish mounts up, the cry of bitter hopelessness, endless
suffering. It ceases and is followed by a silence. Out of this rises in
single notes, pianissimo, a voice, as it were, of hope and strength. It
is woven into a fugue as if in only such discipline were there promise
of victory, not for Beethoven alone, but for the human race.
The fugue rises to a climax, but only to be broken off by an abrupt

and boding modulation. Once again the anguished voice is heard,
now broken with weariness (ermattend, in Beethoven’s own
expression). The section is in G minor. When the melody ceases the
music seems to beat faintly on in single notes. Suddenly there is a
soft chord of G major. The effect is one of the most beautiful
Beethoven ever conceived. And then the chords follow each other,
swelling to great force. Hushed at first, the fugue speaks again. This
time the melody is inverted. Extraordinary mastery of the science of
music is now brought to bear upon weaving a fitting and glorious
ending to the great work. The fugue subject in its original intervals is
employed in diminution as a background of counterpoint against
which the same subject, in augmentation, rises into greater and
greater prominence. The music gains in strength. It mounts higher
and higher; at last it seems to blaze in triumph.
Here is a sonata which seems to have an organic life. The whole

work is not only expressive of varied and powerful emotions, it
seems to build itself out of the conflict that goes on between them.
One is hardly conscious in listening that it may be divided into
movements. One hears the unfolding of a single mighty work. And in
this case, be it noted, the effect has little to do with thematic
relationships between the various movements.
By thus filling a conventional group of movements with one and the

same life, Beethoven brought the sonata to a height beyond which it
can never go. It may, indeed, be asked whether these last works are
sonatas, whether they be not some new form. Yet the steps by which
they evolved are clear, and in them all there are manifold traces of
their origin. There is no other literature for the pianoforte comparable
to them in scope and power. The special quality of their inspiration
each must judge for himself, whether it move him, appeal to him, suit
his taste in beauty of sound. But to that inspiration no one can deny
a grandeur and nobility, a heroic proportion unique in pianoforte
music.
V
The sonatas, from first to last, are Beethoven’s chief contribution to
this special branch of music. Two of the five concertos have held
their place beside these, the fourth in G major and the fifth in E-flat
major. The huge proportions of the latter will probably not impress so
much as they have in years past. It is commonly called the ‘Emperor’
concerto. In the first movement there are many measures which give
an impression of more or less perfunctory, intellectual working-out.
The middle movement is inspired throughout, and the modulation
from B major to the dominant harmony of E-flat major just before the
final rondo is wonderfully beautiful. The subject of the rondo has a
gigantic vigor. The G major concerto is of much more delicate
workmanship and, from the point of view of sheer beauty of sound, is
more effective to modern ears. The treatment of the solo instrument
is more consistently pianistic, adds more in special color, therefore,
to the beauty of the whole. The slow movement fulfills an ideal of the
concerto which up to that time and even later has been almost
ignored. It is a dialogue, a dramatic conversation between the
orchestra and the piano, the one seeming to typify some dark power
of fate, the other man. Its beauty is matchless. It is worthy of remark
that both the G major and the E-flat major concertos begin with
passages for the solo instrument.
Besides the sonatas and the concertos Beethoven published several

sets of shorter pieces, rondos, dances, variations, and ‘Bagatelles.’
They are hardly conspicuous, and, in comparison with the longer
works, are insignificant. The thirty-three variations on a waltz theme
of A. Diabelli, published in 1823 as opus 120, are marvellous as a
tour de force of musical skill; second, however, to the Goldberg
Variations of Bach, to which they seem to owe several features. Is it
possible that a variation like the twenty-eighth owes something to
Weber as well?
The pianoforte works of Haydn, Mozart, and Beethoven represent a

fairly distinct epoch in the development of music for the instrument.
At the beginning men belonging to a rather different period were still
living, some were still at work. At the end a new era was forming
itself. The insulation which seems to surround the three great
composers proves, as we have said, on close inspection to be
imperfect. Still, their work represents one phase of development. As
such, it is easy to trace the evolution of one definite form, the sonata,
under the influences which each brought to bear on it. Similarly one
can trace the constant expansion of the pianoforte technique from
the time when, adapted to instruments of light action and tone, it
differed but little from the harpsichord technique, to the time when,
formed upon the massive Broadwood pianos with their resonant
tone, it brought from the instrument powerful and varied effects
second only to the orchestra.
The epoch has, on the other hand, more than an historical
significance. It brought into music the expression of three geniuses
of the highest order. Each has its own special charm, its own
character, its own power. One should not be valued by comparison
with the others. What Haydn gave, what Mozart gave, and what
Beethoven gave, all are of lasting beauty and of lasting worth. From
Haydn the common joys and a touch of the common sorrows of
people here under the sun; from Mozart a grace that is more of the
fairies, a voice from other stars singing a divine melody; from
Beethoven the great emotions, great depths of despair, great heights
of exaltation, half man, half god, of that heroic stuff of which Titans
were made.

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part one Foundations of Multinational Management 1

part two Strategy Content and Formulation for Multinational

part three Management Processes in Strategy Implementation: Design

part four Strategy Implementation for Multinational Companies:

part five Strategy Implementation for Multinational Companies:

part one Foundations of Multinational Management 1

The Next Generation of Multinational Managers 22

2 CULTURE AND MULTINATIONAL MANAGEMENT 43

GLOBE National Culture Framework 64

Caveats and Cautions 76

3 THE INSTITUTIONAL CONTEXT OF MULTINATIONAL MANAGEMENT 90

Social Inequality 113

4 MANAGING ETHICAL AND SOCIAL RESPONSIBILITY CHALLENGES IN

National Differences in Business Ethics and Social Responsibility 134

Toward Transnational Ethics 140

Polish Attitudes Regarding U.S. Management 173

part two Strategy Content and Formulation for Multinational

Competitive Advantage and Multinational Applications of Generic Strategies

Strategy Formulation: Traditional Approaches 194

6 MULTINATIONAL AND ENTRY-MODE STRATEGIES: CONTENT AND

Resolving the Global-Local Dilemma: Formulating a Multinational Strategy 223

Political Risk 239

7 SMALL BUSINESSES AND INTERNATIONAL ENTREPRENEURSHIP: OVERCOMING

Overcoming Small Business Barriers to Internationalization 260

When Should a Small Business Go International? 267

New Venture Strategies for Small Multinational Companies 273

International Entrepreneurship 274

International Automobile Market 287

Tata Group 288

part three Management Processes in Strategy Implementation:

Organizational Structures to Implement Multinational Strategies 309

Control and Coordination Systems 327 / Design Options for Control

Knowledge Management 333

9 INTERNATIONAL STRATEGIC ALLIANCES: DESIGN AND MANAGEMENT 351

Negotiating the Agreement 362

Commitment and Trust: The Soft Side of Alliance Management 366

Assessing the Performance of an International Strategic Alliance 369

10 MULTINATIONAL E-COMMERCE: STRATEGIES AND STRUCTURES 393

Fundamentals of E-Commerce Strategy and Structure 399

CHAPTER CASE: Yumcha.Com.AU 419

Anatomy of the Deal: Main Problems and Outcomes 433

The Performance of the Slovak Parent Company 439

part four Strategy Implementation for Multinational Companies:

Multinational Managers: Expatriate or the Host Country 446

The Expatriate Manager 452

International Assignments for Women 466

CHAPTER CASE: People Management Fiasco in Honda Motorcycles

Implications for the Multinational: Recruitment and Selection 507

Implications for the Multinational: Training and Development 514

Implications for the Multinational: Performance Evaluation and Compensation 523

part five Strategy Implementation for Multinational Companies:

International Negotiation 570

Steps in International Negotiations 570 / Step 1: Preparation 570 / Step 2: