How should international corporations comply with local regulations?

When international companies enter new markets, they must choose how to manage formal and informal local rules, which can vary widely. Local institutions and rules matter, and there are clear risks for senior management at headquarters who do not take them seriously. But constantly adapting to local practices can undermine a company’s ability to integrate operations across markets. A study of five globally successful Nordic companies identified six tactics that companies can use to address local rules while maintaining a competitive advantage: avoid, change, adapt, imitate, influence, and innovate.