Business Process Standardization of Multinational Enterprises: Two Distinctive Organizational Models

Abstract: Business process standardization practice was studied in the context of integration and adaptation. 31 Japanese and non-Japanese MNE were interviewed to find a practice of standardizing business process globally. 4 distinctive types of standardization were identified. Two top down approaches were consistent with organizational characteristics such as clear job specification, in contrasting on those using Kaizen-like approaches, with general characteristic employment as membership, which can be called T-type and J-type, respectively. Both top-down and Kaizen-like approach uses replication strategy to have globally integration but remains flexible when executed at different geographic location to have adaptation needed.

Key words: operation standard; integration and adaptation; business process management; process replication; kaizen approach

        JEL codes: F0, L2