Table 1.

Implications of openness for international businesses

Leveraging diversity through distanceReducing distance through openness as social coordination mechanism
  • Reducing cognitive biases of HQ-centred strategies

  • Integration of specific local subsidiary expertise

  • Integration of external, diverse knowledge from local suppliers, institutions, stakeholders

  • Systematic recombination of different perspectives, knowledge and skills

  • Leveraging firm- and industry-distant knowledge

  • Leveraging knowledge heterogeneity through geographical dispersion

  • Engaging in new practices to Pool and exploit knowledge and resources

  • Openness as focus on joint interactions and exchange

  • Aligning and pursuing collective organizational goals, resources and activities

  • Building trust and shared understanding and aligning collective behavior

  • Reducing cognitive and emotional distance within MNEs

  • Increasing organizational commitment

  • Joint sensemaking in large, globally dispersed organizations

Source: Table by author

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