Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Global Strategy, Local Words: Navigating Interpretation and Implementation in Decentralized MNCs

Linde, Johan LU and Broman, Rasmus LU (2025) MIOM05 20251
Department of Mechanical Engineering Sciences
Production Management
Abstract
This thesis investigates the complexities of strategy implementation within a decentralized multinational corporation (MNC), focusing on how a global strategic directive aimed at enhancing profitability per unit is interpreted and implemented across diverse regional and site-level contexts. The core purpose is to identify critical factors that influence this process, understand their interconnectedness, and derive actionable insights to improve strategic alignment.

Key findings reveal that the interpretation and implementation of the strategic directive are shaped by a confluence of interconnected factors. Foremost among these are the proactive engagement and agency of leaders at all levels, who actively drive sensemaking and... (More)
This thesis investigates the complexities of strategy implementation within a decentralized multinational corporation (MNC), focusing on how a global strategic directive aimed at enhancing profitability per unit is interpreted and implemented across diverse regional and site-level contexts. The core purpose is to identify critical factors that influence this process, understand their interconnectedness, and derive actionable insights to improve strategic alignment.

Key findings reveal that the interpretation and implementation of the strategic directive are shaped by a confluence of interconnected factors. Foremost among these are the proactive engagement and agency of leaders at all levels, who actively drive sensemaking and translation, and the critical necessity of local adaptation to specific regional and site contexts. Foundational to these are the effectiveness of communication flow and clarity from HQ and the subsequent strategy interpretation by local actors. Other crucial elements, including existing regional maturity, capabilities and culture, the inherent tensions of the decentralized matrix structure, the nature of implementation processes and follow-up, and perceived closeness to HQ, act as significant contextual and mediating variables. These factors are shown to be deeply interconnected, creating a dynamic system where contextual characteristics are critically mediated by leadership engagement to enable effective local adaptation and determine the ultimate degree of strategic alignment.

The thesis concludes that effective strategic alignment in a decentralized MNC is achieved not through enforced uniformity, but by fostering a shared understanding of core strategic intent while actively supporting contextualized local interpretation and execution. Key recommendations for improving alignment include investing in and empowering strategic leadership at all organizational levels, embracing contextualized interpretations, and enhancing multidirectional communication with robust support for local translation. The research ultimately highlights that successful global strategy implementation hinges on balancing central direction with empowered local adaptation. (Less)
Please use this url to cite or link to this publication:
author
Linde, Johan LU and Broman, Rasmus LU
supervisor
organization
course
MIOM05 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Strategy Implementation, Multinational Corporations, Decentralization, Strategic Alignment, Sensemaking, Local Adaptation, Leadership
other publication id
25/5318
language
English
id
9198761
date added to LUP
2025-06-17 16:44:23
date last changed
2025-06-17 16:44:23
@misc{9198761,
  abstract     = {{This thesis investigates the complexities of strategy implementation within a decentralized multinational corporation (MNC), focusing on how a global strategic directive aimed at enhancing profitability per unit is interpreted and implemented across diverse regional and site-level contexts. The core purpose is to identify critical factors that influence this process, understand their interconnectedness, and derive actionable insights to improve strategic alignment.

Key findings reveal that the interpretation and implementation of the strategic directive are shaped by a confluence of interconnected factors. Foremost among these are the proactive engagement and agency of leaders at all levels, who actively drive sensemaking and translation, and the critical necessity of local adaptation to specific regional and site contexts. Foundational to these are the effectiveness of communication flow and clarity from HQ and the subsequent strategy interpretation by local actors. Other crucial elements, including existing regional maturity, capabilities and culture, the inherent tensions of the decentralized matrix structure, the nature of implementation processes and follow-up, and perceived closeness to HQ, act as significant contextual and mediating variables. These factors are shown to be deeply interconnected, creating a dynamic system where contextual characteristics are critically mediated by leadership engagement to enable effective local adaptation and determine the ultimate degree of strategic alignment.

The thesis concludes that effective strategic alignment in a decentralized MNC is achieved not through enforced uniformity, but by fostering a shared understanding of core strategic intent while actively supporting contextualized local interpretation and execution. Key recommendations for improving alignment include investing in and empowering strategic leadership at all organizational levels, embracing contextualized interpretations, and enhancing multidirectional communication with robust support for local translation. The research ultimately highlights that successful global strategy implementation hinges on balancing central direction with empowered local adaptation.}},
  author       = {{Linde, Johan and Broman, Rasmus}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Global Strategy, Local Words: Navigating Interpretation and Implementation in Decentralized MNCs}},
  year         = {{2025}},
}