EPRG typology
The EPRG model is one of Howard V. Perlmutter based model of strategic development of international companies . The model is considered to be one of the most significant and influential concepts of international management in the economic literature. It deals in particular with the question of whether the corporate culture and strategy of the home country will be adapted or imposed on the countries of the various subsidiaries .
Surname
The name of the model is an acronym from the four different corporate strategies. The: First Perlmutter differed only between three archetypes E thnozentrische , P olyzentrische and G eozentrische corporate strategy. These were later he and other authors around the R egiozentrische added strategy. Therefore, the model is sometimes just referred to as the EPG model.
The four types of strategies
According to the EPRG model, a distinction is made between the extremes of a polycentric, i.e. region-specific, and a centralized , worldwide uniform organizational structure :
The core culture is transferred to all subsidiaries, whose key positions are preferably filled by members of the home country. Business decisions are made by the parent company and are not or only slightly adjusted regionally.
Subsidiaries enjoy a certain degree of independence, employ predominantly domestic managers and adapt their activities to local conditions.
- Regiocentric
The subsidiaries' strategies, behavior and employee pool will be standardized in certain regions (e.g. continents).
- Geocentric
The different country markets in which the organization is represented are integrated taking into account the global corporate strategy and individual differences. Personnel are deployed around the world based on performance, regardless of nationality.
literature
Primary literature
- HV Mother of Pearl: The Tortuous Evolution of Multinational Enterprises. In: Columbia Journal of World Business. 4th vol., No. 1, 1969, pp. 9-18. ( PDF ; 1.4 MB, English).
- HV Perlmutter, DA Heenan: How Multinational Should Your Top Managers Be? In: Harvard Business Review. 52nd vol., No. 6/1974, pp. 121-132.
- DA Heenan, HV Perlmutter: Multinational Organization Development - A Social Architectural Perspective. Reading 1979, ISBN 0-201-02953-7 .
Secondary literature
- J. Eaton: Comparative Employment Relations: An Introduction. Blackwell Publishers, Cambridge 2000, ISBN 0-7456-2293-3 .
- M. Kutschker, S. Schmid: International Management. 6th edition. Munich 2008, ISBN 978-3-486-58660-2 .