Research: How Should Multinational Firms Navigate Local Rules?

This article discusses the tactics that multinational companies can use to navigate local rules when entering new markets. The study focuses on five successful Scandinavian corporations and identifies six tactics that fall between global standardization and local adaptation. These tactics include avoiding local rules, replicating previous adjustments, adapting to local norms, imitating existing operations, influencing local rules, and actively managing the local context. The article emphasizes the importance of understanding and managing local institutions and rules, as well as the tension between headquarters and subsidiaries. The findings highlight the need for multinational corporations to actively respond to and influence formal and informal rules in order to spread their innovations globally. [Extracted from the article]