Transnational organizations
Transnational organizations are internationally based corporations. In addition, they do not have a home base. This means that they don’t have specific or definite international identities (Travis, 2007, p. 13). Transnational organizations or corporations have continued to face various challenges. They encounter numerous barriers to entry from developing countries. This is because they have a negative impact on local infant industries.
Since they don’t have a specific international identity, they encounter various cultural problems. Hence, it becomes difficult to operate in different countries with distinct cultural diversities. There is also an exchange risk that is faced by these multinationals (Travis, 2007, p. 13). This means that as they sell products to various customers, they will be subjected to numerous transaction risks.
It is therefore important to recognize these challenges before responding to them. This will enable the organization to come up with good strategies that can cushion it against any eventualities (Travis, 2007, p. 13). In addition, they will be able to have a better understanding of these challenges before they can respond to them.
The multidimensional and competitive environment
Every organization is exposed to a multidimensional and competitive environment. This means that they need various capabilities to compete well. For enhanced sustainability, an organization should be able to come up with a new set of capabilities every now and then. World-class quality is an essential capability that an organization needs for success. This will enable them to sustain any competition as customers’ are nowadays more informed and demanding (Porter, 1998, p. 24).
Information technology is also another important and vital capability that organizations need in a multidimensional and competitive environment. This is because it enhances business operations and reduces costs that an organization might incur in the course of carrying out its operations. Comprehensive profiling is also needed as a core competence for success (Porter, 1998, p. 28). This will enable the organization to cope up with new challenges as far as the multidimensional and competitive environment is concerned.
An organization can develop these capabilities by upgrading its organizational framework for efficiency (Porter, 1998, p. 30). They can also attract the best talent to enhance and develop new and existing capabilities. This will be supported by good and effective decision-making mechanisms and frameworks.
Cross-border knowledge management
Organizations need to create awareness of the need for cross border knowledge management. They can incorporate rewards into various performance plans. This will enable employees to be more concerned about cross border knowledge management. In the long run, they will be informed of its importance (Bontis & Choo, 2002, p. 14). Motivations can also be used to create more awareness of the need for cross border knowledge management.
This means that knowledge content will have to be increased in the development of goods and services. Technology can also be used to create more awareness of the need for cross border knowledge management (Bontis & Choo, 2002, p. 17). In this case, the organization should be able to enhance capture incentives as employees will be more interested.
If their methods of creating awareness are inadequate, the organization needs to involve all stakeholders for efficiency. This means that it can invite suggestions on the best way forward. They can also review and upgrade the current methods of creating awareness for flexibility (Bontis & Choo, 2002, p. 14). This will enable the organization to discover its weaknesses and come up with a better solution.
Summary
Transnational organizations or corporations have continued to face various challenges. Since they don’t have a specific international identity, they encounter various cultural problems. It, therefore, becomes difficult to operate in different countries with distinct cultural diversities. For enhanced sustainability, an organization should be able to come up with a new set of capabilities every now and then.
This is because every organization is exposed to a multidimensional and competitive environment. Organizations are expected to create awareness of the need for cross border knowledge management. If their methods of creating awareness are inadequate, the organization needs to involve all stakeholders in the best way that such an issue can be approached.
Reference list
Bontis, N., & Choo, C, W. (2002). The Strategic Management of Intellectual Capital and Organizational Knowledge. New York: Oxford University Press.
Porter, M, E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Detroit: Free press.
Travis, T. (2007). Doing Business Anywhere: The Essential Guide to Going Global. Hoboken: John Wiley&Sons.