Object oriented control structure models for multinational corporations

The conceptual structure underlying the theory by A.K. Gupta and V. Govindarajan (1991) on multinational corporations (MNCs) is discussed. Their theory of knowledge flows vs. corporate control structures (KF/CS-theory) is extended into a general object model that provides a framework for MNC strategic control and organizational design. It is shown how corporate structures can be evaluated with the model, and an implementation of the model using Stratex, an object oriented modeling tool designed to support strategic management in large corporations, is discussed. The knowledge representation capabilities of Stratex can be utilized for dynamic and anticipatory design of organizations, their control systems, and information system support for management of MNCs