Nonlinear systems theory: a more dynamic approach to international strategic management

Outlines the strategic challenges faced by multinationals (e.g. the conflict between globalization and localization, environmental volatility etc.) and argues that the use of nonlinear systems theory (chaos theory) can help. Explains how “phase planes” can provide insight into changes in the international environment and illustrates their use in choosing intervention strategies to respond to changing risk ratings in Mexico and Brazil over time. Summarizes the advantages of this dynamic approach over traditional linear analysis methods and believes that it can be universally applied to financial, operational or economic measures.