1,720,975 research outputs found
Host-country environment and subsidiary competence: Extending the diamond network model
No full textWe extend the “centers of excellence” concept to address the diversity and multidimensionality of subsidiary competence. Using Rugman and Verbeke's diamond network model, we hypothesize the contingencies influencing the links between host-country environments and subsidiary competence configuration, and provide evidence from more than 2000 subsidiaries in seven European countries. Our results provide new insights into how multinational enterprises can overcome “unbalanced” national diamonds by acquiring complementary capabilities across borders
Competitive advantage and the existence of the multinational corporation : earlier research and the role of frictions
No full textThis article provides a counterpoint to Hashai and Buckley's article ‘Is competitive advantage a necessary condition for the emergence of the multinational enterprise?’ We agree with their conclusion that it is, in fact, not a necessary condition, but argue that the theoretical reasons behind this are different and more diverse than the ones they propose. We suggest that much extant economic theory is, in fact, consistent with their view that firms may internationalize without owning or achieving competitive advantages, and we model various other ways in which imperfections can drive their overall result. We strongly applaud Hashai and Buckley's attempt to add more rigor to international business theory and call for future work to extend this debate
Organizational adaptation in offshoring: the relative performance of home- and host-based learning strategies
Full text linkOffshoring offers managers the promise of substantial economic benefits, but also comes with the risk of increased complexity and coordination challenges. We argue that offshoring firms must accumulate architectural knowledge to keep the cost of coordination of the geographically separated activities at bay. Based on a simulation model that examines the performance implications of firms’ learning strategies when offshoring, we show that such knowledge accumulation can be achieved through either a home-based or a host-based learning strategy
How do we capture "Global specialization" when measuring firms' degree of globalization?
No full textThe IB literature informs us of several ways to measure firms’ degree of globalization. In this paper we make the argument that in fact none of the existing indices really measure firms’ degree of “global specialization”, that is, to what extent their allocation of resources is multidomestic or global.
In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains — whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. We then test this “global specialization” index empirically on a sample of Danish MNCs
The role of procedural justice for global strategy and subsidiary initiatives
No full textThe global strategy literature highlights the role of headquarters (HQ) in realizing global integration benefits while enabling independent subsidiary strategic initiatives. We construct a game‐theoretic model of the interaction between HQ and subsidiaries, and, building on procedural justice theory, we analyze the motivational costs that can result from the anticipation or realization of HQ intervention in subsidiary initiatives. We also analyze the implications for MNC‐level value creation when HQ managers, fearing subsidiary managers’ emotion‐based reactions, refrain from intervening. We derive a number of counter‐intuitive results, for example, that good HQ behavior may involve forgoing opportunities for value creation, and that procedural justice systems may sometimes be counterproductive
Corporate social responsibility in the global value chain: A bargaining perspective
Full text linkBreaches of corporate social responsibility (CSR) in global value chains (GVCs) pose a managerial challenge for multinational enterprises (MNEs) and threaten both their reputations and global sustainability. While an MNE-centric perspective on these issues has dominated existing international business research, we show that a dynamic view of bargaining among actors in the GVC can yield novel insights. We draw on coalitional game theory and develop a model where an MNE collaborates, monitors, and negotiates prices with a supplier whose CSR breaches may be revealed by the MNE, external agents, or remain hidden. Our model illustrates how MNEs may face a hold-up problem when irresponsible actions by suppliers are made public, and the suppliers have the power to engage in opportunistic renegotiation. Interestingly, we show that greater monitoring by MNEs, if not combined with specific strategies, can have negative consequences by weakening the MNE's bargaining position and, in some cases, even prompting more irresponsible actions by the suppliers. Our model advances international business research on GVC sustainability and has important implications for managers and researchers alike
Internalization theory
No full textInternalization is defined as a general principle that explains the nature and boundaries of organizations; its application to the multinational enterprise (MNE) is just one of its many applications. It is a highly specialized principle, targeted specifically at explaining where boundaries lie and how they shift in response to changing circumstances. By itself, it does not explain other aspects of organizations. Progress in internalization theory is achieved by combining this core approach with other principles to generate a wide range of predictions about different aspects of organizational behaviour
- …
