Hart, Stuart L. / London, Ted / 2005. Developing native capability.
Stanford Social Innovation Review, 3 (2): 28-33.

Today multinational corporations (MNCs) find themselves on the horns of a dilemma. With the unprecedented performance of stocks over much of recent history as a backdrop, their shareholders now expect double-digit returns, yet the global economy limps along at an annual average rate of growth of only 2%-3%. The question remains whether corporations' quest for future growth serve only to fan the flames of the antiglobalization movement? The best way out of this global "Catch-22" is for MNCs to focus on emerging markets, not the incremental market expansion targeted at the wealthy few, but the much larger base of the economic pyramid. MNCs must combine their advanced technology and global reach with a new type of deep local understanding, based on engaging local people. An effective combination of local and global knowledge is needed, not a replication of the Western system. This combination requires the development of a new capability - native capability.

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Sector: Enterprise Microcredit Sanitation Access
Region: East Africa East Asia, South Asia, Southeast Asia