Topic
Multinational corporation
About: Multinational corporation is a research topic. Over the lifetime, 17457 publications have been published within this topic receiving 503253 citations. The topic is also known as: MNE & MNC.
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TL;DR: The authors empirically examined the decision to transfer the capability to manufacture new products to wholly owned subsidiaries or to other parties and found that the less codifiable and the harder to teach is the technology, the more likely the transfer will be to wholly-owned operations.
Abstract: Firms are social communities that specialize in the creation and internal transfer of knowledge. The multinational corporation arises not out of the failure of markets for the buying and selling of knowledge, but out of its superior efficiency as an organizational vehicle by which to transfer this knowledge across borders. We test the claim that firms specialize in the internal transfer of tacit knowledge by empirically examining the decision to transfer the capability to manufacture new products to wholly owned subsidiaries or to other parties. The empirical results show that the less codifiable and the harder to teach is the technology, the more likely the transfer will be to wholly owned operations. This result implies that the choice of transfer mode is determined by the efficiency of the multinational corporation in transferring knowledge relative to other firms, not relative to an abstract market transaction. The notion of the firm as specializing in the transfer and recombination of knowledge is the foundation to an evolutionary theory of the multinational corporation
3,376 citations
TL;DR: The authors empirically examined the decision to transfer the capability to manufacture new products to wholly owned subsidiaries or to other parties and found that the less codifiable and the harder to teach is the technology, the more likely the transfer will be to wholly-owned operations.
Abstract: Firms are social communities that specialize in the creation and internal transfer of knowledge. The multinational corporation arises not out of the failure of markets for the buying and selling of knowledge, but out of its superior efficiency as an organizational vehicle by which to transfer this knowledge across borders. We test the claim that firms specialize in the internal transfer of tacit knowledge by empirically examining the decision to transfer the capability to manufacture new products to wholly owned subsidiaries or to other parties. The empirical results show that the less codifiable and the harder to teach is the technology, the more likely the transfer will be to wholly owned operations. This result implies that the choice of transfer mode is determined by the efficiency of the multinational corporation in transferring knowledge relative to other firms, not relative to an abstract market transaction. The notion of the firm as specializing in the transfer and recombination of knowledge is the foundation to an evolutionary theory of the multinational corporation.
3,354 citations
Book•
01 Jan 1976
TL;DR: A long-run theory of the multinational enterprise alternative theories of the Multinational Enterprise has been proposed in this article, and the World's Largest Firms Predictions and Policy Implications Index has been developed.
Abstract: Introduction to the 25th Anniversary Edition Introduction to the Second Edition Preface The Multinational Enterprise in the World Economy A Long-run Theory of the Multinational Enterprise Alternative Theories of the Multinational Enterprise The World's Largest Firms Predictions and Policy Implications Index
3,249 citations
TL;DR: In this paper, a framework is presented that explains the existence of international new ventures by integrating international business, entrepreneurship, and strategic management theory, and it describes four necessary and sufficient elements for such organizations: organizational formation through internalization of some transactions, strong reliance on alternative governance structures to access resources, establishment of foreign location advantages, and control over unique resources.
Abstract: Organizations that are international from inception – international new ventures – form an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises. A framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory. That framework describes four necessary and sufficient elements for the existence of international new ventures: (1) organizational formation through internalization of some transactions, (2) strong reliance on alternative governance structures to access resources, (3) establishment of foreign location advantages, and (4) control over unique resources.
3,148 citations
TL;DR: In this article, the authors addressed the question of whether firms in a competitive, globally integrated environment face a "liability of foreignness" and to what extent either importing home-country organizational capabilities or copying the practices of successful local firms can help them overcome this liability.
Abstract: This study addressed the question of whether firms in a competitive, globally integrated environment face a “liability of foreignness” and to what extent either importing home-country organizational capabilities or copying the practices of successful local firms can help them overcome this liability. Predictions were tested with a paired sample of 24 foreign exchange trading rooms of major Western and Japanese banks in New York and Tokyo. Results support the existence of a liability of foreignness and the role of a firm's administrative heritage in providing competitive advantage to its multinational subunits. They also highlight the difficulty firms face in copying organizational practices from other firms.
3,120 citations