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How do networks and learning organizations help to ensure a MNE's competitive advantage? 

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We find that firms have strong incentives to use the network to gain a competitive advantage and create (ex post) asymmetries.
This paper demonstrates how learning networks are used by subsidiaries to maximize the strategic value of knowledge as a source of power; and how the embedded nature of knowledge influences this process.
Using concepts from network theory, the study develops a model that shows how the structural characteristics—connectedness, weak ties, structural holes and network centrality—lead to benefits such as adaptation, knowledge, control, and resources, which in turn lead to competitive advantage.
from network studies may help communities learn how to strengthen organizational networks to enhance community capacity.
The paper makes several basic points on the relationship between inter‐unit knowledge sharing and renewing competitive advantage in multinational corporations. Findings – The critical findings relate to the importance of creating effective inter‐personal networks for enhancing knowledge shar...
Book ChapterDOI
Tim Rowley, Joel A. C. Baum 
25 Jul 2008
23 Citations
Network-based competitive advantages are thus influenced by network opportunities and constraints as well as partner-specific concerns, suggesting that new insights into the dynamics of interfirm networks and competitive advantage of firms are possible within this broader view.
Competitive advantage grows from firm-specific knowledge.
This is important evidence of the strategic competitive advantage based on financial networks enjoyed by MNCs.
Our findings suggest that the interaction between the MNE's organizational characteristics and its geographic orientation is associated with MNEs performance.

Related Questions

What role does cultural understanding play for MNE?5 answersCultural understanding plays a crucial role for Multinational Enterprises (MNEs) in various aspects. Firstly, cultural differences impact international marketing strategies, diversifying corporate culture while also posing management challenges. Secondly, cultural factors significantly influence knowledge sharing within MNEs, with national and organizational cultures reinforcing individual motivation for sharing knowledge. Additionally, cultural nuances affect the utilization of information technology within MNEs, with impediments to data flow being related to cultural differences. Moreover, in emerging markets, understanding cultural contexts is essential for successful knowledge transfer from subsidiaries to headquarters of MNEs. Overall, cultural understanding is pivotal for MNEs in navigating marketing strategies, knowledge sharing, technology implementation, and knowledge transfer across diverse cultural landscapes.
What are MNE determinants of success?5 answersThe determinants of success for Multinational Enterprises (MNEs) encompass various factors highlighted in the provided research contexts. These determinants include the location strategy, natural resources endowments (NREs), and key elements within the mergers and acquisitions (M&A) process. Specifically, success factors for MNEs involve aspects such as the relationship between location determinants and performance, the impact of NREs on MNE performance, and the critical elements to consider during M&A activities to enhance outcomes. Additionally, factors like private ownership, state ownership, financial resources availability, and research and development efforts serve as moderators influencing the NRE-performance relationship for MNEs. Understanding and effectively leveraging these determinants are crucial for MNEs aiming to achieve sustainable success in the global business landscape.
How to create competitive advantage?4 answersCreating competitive advantage involves several key factors. Firstly, organizations need to focus on knowledge and innovation-driven approaches, where the capacity of individuals to create and modify processes is crucial. Secondly, access to valuable resources such as natural resources, skilled labor, and new technology can provide a competitive edge. Additionally, talent development and leadership play a significant role in attaining competitive advantage. Furthermore, strategic alliances can enhance competitiveness by creating unique and valuable products. By integrating these factors into their strategic plans, organizations can identify the path to achieving their objectives and promoting competitive advantage. To summarize, creating competitive advantage involves leveraging knowledge and innovation, accessing valuable resources, developing talent and leadership, and forming strategic alliances.
Hhow does company network affect to mergers and acquisitions?5 answersCompany networks have a significant impact on mergers and acquisitions (M&As). Network science can be used to analyze the evolution patterns of M&As for Chinese companies, revealing that the centrality of a company, measured by degree, betweenness, closeness, and PageRank, is related to the amount of money involved in M&As. Transaction networks can be used to categorize M&A cases based on betweenness centrality and shortest path length, providing insights into the overall business situation and neighboring business environments. The network perspective on M&As emphasizes the importance of considering business relationships, industry changes, marketing synergies, integration challenges, and partner reactions in understanding the motivations, choices, and outcomes of M&As. Additionally, the social capital reflected through a company's network position, such as structural holes and network density, can influence the level of acquisition premiums, with different network structures providing different social capital influences.
How can an organization achieve competitive advantage?9 answers
How can human resource management provide a competitive advantage for an organization?6 answers

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