Research on global strategy

This paper reviews the extant literature on global strategy. We argue that the literature has developed along three major directions, namely: (1) the literature identifying the emergence of a global village; (2) the literature identifying the advantages to a firm following a global strategy; and (3) the literature addressing the management challenges and the implementation issues faced by an international firm. We find that the literature has arrived at a number of important conclusions, namely: (1) the global environment places conflicting demands on participating firms; (2) there is no one strategy called global strategy, firms adopt different strategies to compete in the global arena; (3) the benefits accruing from a global strategy are contingent on the industry environment; (4) it is imperative to have multidimensional capabilities in the global arena; (5) matrix structures are becoming increasingly vital in implementing global strategies; and, finally, (6) the actual benefits of adopting matrix structures are contingent on the adoption of appropriate management processes. We identify the trends in the literature and suggest some directions for further research on the topic.