University of Vaasa - Vaasan yliopisto

Doz et al (2001) try to extend the concept of a GBO further. They use the term
‘metanational’ to describe organizations that derive competitive practice from all
over the world, rather than a single (home) country. But this is a behaviour that
should be exhibited by all truly global businesses, and the sub-set suggested by Doz
is not useful in a research context. The Thunderbird Business School (undated) uses
a definition that embraces behaviours and business objectives in addition to revenue
distribution. In this model, the GBO has global aspirations; a global and multicultural
workforce, a global supply chain; (aspirations for) a global market with over 50% of
its business outside the US (which is assumed to be its home market); and nonemployee
business partners. This multi-dimensional definition is the broadest, and
most useful of the ones reviewed here, although it does not offer the precision in
revenue distribution used by Redding (and takes a US-centric view of the world).
This discussion shows the complexities of defining GBOs, as well as the growing
research interest in this field. To contribute, we propose a new definition for a GBO
that draws on the literature referenced above and which uses seven criteria, as
follows:
1. Geographical distribution of revenue, as in indicator of distribution of
business activity (after Redding, 2006, and UNCTAD, 1992)
2. Geographical distribution of employees. This is used as an indicator of
organizational culture: the more geographically diverse the employee
population, the more likely that the culture will be global rather than regional
or national (after Thunderbird Business School, undated, and UNCTAD,
1992)
3. Geographical distribution of R&D centres. To benefit from the global
diversity of academic & research cultures, a global distribution of R&D sites
is required
4. Geographical distribution of manufacturing facilities, if applicable (i.e. if the
organization undertakes any manufacturing). To facilitate global wealth
creation and to derive business benefits from a global supply chain, global
distribution of manufacturing sites is required (developed from UNCTAD,
1992)
5. Management diversity, where data is available, and considering either
executive or senior management (as defined by the company itself). This is
also used as an indicator of organizational culture however the indicator looks
at the origin, not the assigned location, of the senior or executive
management
6. Location, & number of headquarters sites, as defined by the company, and
where a true GBO would have no single, fixed HQ
7. Consistent and continual (public) statements of global aspiration and, or a
global culture, with qualitative evidence (after Thunderbird Business School,
undated)
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