A Firm Pursuing a Localization Strategy Will Have a Strong
A firm pursuing a localization strategy will have a strong incentive to centralize decision- making.
The choice between centralization and decentralization is not absolute.
In firms pursuing a transnational strategy,some operating decisions are relatively centralized,while others are relatively decentralized.
Beyond the initial functional division of the organization,further horizontal differentiation may be required if the firm significantly diversifies its product offering,which takes the firm into different business areas.