January 27, 2009

We increasingly need to stop thinking about companies as having fixed national identities

Firms are typically linked to the nation in which they began and are considered to have fixed national identities. However, firms continue to maximize the opportunities created by global markets – including reallocating functions across nations. A firm's legal home, its financial home and its homes for managerial talent no longer need to be colocated and, consequently, the idea of firms as national actors rooted in their home countries is rapidly becoming outdated. In other words, we increasingly need to stop thinking about a company as, for example, a Danish company, a Swiss company, a Japanese company, an American company, a British company, an Indian company etc. Read more in this interesting working paper by Mr. Mihir A. Desai.

A question for you:
What do you and your colleagues do to get better at working across various borders, for example across company functions and national borders?
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