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Encyclopedia of International Strategic Management

Book Chapter
The integration-responsiveness (IR) framework has been used extensively in international business (IB) to represent the diverse and conflicting environmental pressures confronting multinational corporations (MNCs) as they expand worldwide. As per the IR framework, firms are confronted with two broad types of pressures: the pressures of global integration (GI, or I) and the pressures of local responsiveness (LR, or R). The GI pressures - such as the need to reduce cost through large-scale investments, and the presence of global competitors in the firm’s target markets - impel firms to conduct their activities on a global basis. In contrast, the LR pressures - such as diverse government regulations, and differences in customer needs and preferences across countries - require firms to manage their activities on a country-by-country basis.
Faculty

Emeritus Professor of Marketing