![]() For example, New York, London, Frankfurt and Paris are centres of finance, and as such attract a lot of exceptional talent in that field. Fourth, global learning hubs allow organizations to use new “innovation linkages.” In fact “many companies associate the success of their long-term positioning upon their selection of a global city as a Œplace to be,’” the authors say. ![]() The parent organization could even embrace the new advantages found at the affiliate level. For instance, a new partnership in information technology or R&D could lower costs or help provide better service. Third, foreign affiliates must exploit a global hub’s potential to give them advantages not previously available. The most successful organizations surveyed had developed methods for discovering and evaluating new opportunities inherent in an international knowledge base. But highly successful companies look to their global affiliates as starting points for obtaining knowledge and solutions that can then be used elsewhere. Not every strategy or business model that works in one country will work in every country. Second, beyond broadening its goals, an organization must develop a learning and evaluation process. What does this involve? Systematic attempts to improve business relationship and networking skills. First, companies establishing a presence in a global city succeed more when they emphasize learning from their new environment. From this the authors identified four objectives for gaining the most from a global learning hub. ![]() The respondents saw the cities as sources of strategic advantages: points for exchanging information, new labour and capital, sophisticated banking and financial markets, and human resources. They then interviewed top strategy experts from two major consulting companies that had set up affiliate operations overseas.įrom this research, the authors concluded that major world cities offer more than new markets. The researchers surveyed 140 foreign-owned affiliate companies that established a new presence in New York City. However, the authors believe a different set of drivers is powering international expansion. Companies often enter a global city hoping to enter new markets, and thereby grow sales and diversify risk. ![]()
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