Global account management in multinational corporations: theory and evidence

Birkinshaw, J, Arnold, D and Toulan, O (2001) Global account management in multinational corporations: theory and evidence. Working Paper. London Business School Strategic and International Management Working Paper.

Abstract

This paper uses two theoretical perspectives, information processing and resource dependency, to examine global account management (the coordination of activities involved in serving a single customer in multiple countries). It is hypothesized that global account management structures allow the multinational corporation (MNC) to increase its information processing capacity as well as its bargaining power visavis the global customer. Using data on 106 global accounts in 16 MNCs, we find support for both perspectives individually. Furthermore, evidence is presented for an interaction effect in which the effectiveness of structures for increasing information processing is conditional upon the presence of high customer dependence.