transnational corporation

Concept developed by business school academics Christopher Bartlett and Sumantra Ghoshal in the late 1980s and early 1990s to describe an emergent organizational model that transcended national boundaries. In their work they identified four forms of multinational organization: multinational (decentralized with strong local presence), global (more centralized, achieves cost advantages through centralized production), international (exploits parent company's research and development and systems capability), and transnational. The fourth form, the transnational, combines local responsiveness with global efficiency.

A transnational organization is a network of specialized or differentiated units, with attention paid to managing integrative linkages between local firms as well as with the centre. The subsidiary becomes a distinctive asset rather than simply an arm of the parent company. Manufacturing and technology development are located wherever it makes sense, but there is a focus on leveraging local know-how in order to exploit worldwide opportunities.