Table of Contents
L1: Introduction ................................................................................................................................. 5
(Forsgren 2017) Book – CH 1: The multinational firm: a beauty or a beast? ....................................... 5
Bright Side ................................................................................................................................................. 5
Dark side .................................................................................................................................................... 5
Different perspectives of MNC ................................................................................................................. 5
Empirical phenomenon .............................................................................................................................. 5
Beauty or beast?......................................................................................................................................... 6
L2: Theoretical perspectives on the MNC: An overview ............................................................... 7
(Forsgren 2017) Book – CH 2: The dominating multinational: A tale of market power ...................... 7
Adequate Portfolio theory to explain multination firm and FDI ............................................................... 7
Hymers theory ........................................................................................................................................... 7
The negative impact of market imperfection/ market power .................................................................... 7
Hymers Perception of multinational firms ................................................................................................ 7
The multinational enterprise as an organization (Westney et al. 2009).................................................. 8
Abstract ...................................................................................................................................................... 8
Basic assumption ....................................................................................................................................... 8
Internal selection mechanism – 3 approaches ........................................................................................... 8
Environmental pressures for global integration and local responsiveness ................................................ 8
Challenges for the future ........................................................................................................................... 9
Key take away – conclusion – FOCUS HAS CHANGED ........................................................................ 9
L3: The coordinating multinational ............................................................................................... 10
(Forsgren 2017) Book – CH 3: The coordinating multinational; a tale of cost efficiency ................... 10
Internalization theory ............................................................................................................................... 10
Transaction cost economics – TCE ......................................................................................................... 10
How to minimize transaction costs .......................................................................................................... 10
The issue of control in internalization theory – Monitoring is keyword ................................................. 10
Global factory and internalization theory ................................................................................................ 11
International integration and coordination in the global factory (Buckley 2011) ............................... 12
Global factory .......................................................................................................................................... 12
Global factory objectives: ........................................................................................................................ 12
Vertical integration – key explanations ................................................................................................... 13
Horizontal integration – coordination...................................................................................................... 13
Conclusion ............................................................................................................................................... 13
L6: The Knowing multinational ..................................................................................................... 14
(Forsgren 2017) Book – CH 4: The Knowing multinational; a tale of value creation ......................... 14
The organizational capability (OC) perspective ...................................................................................... 14
OC perspective on FDI ............................................................................................................................ 14
Knowledge transfer issues by 3 theories – entry mode choice ................................................................ 14
The societal role of OC perspective ........................................................................................................ 15
What does firm look like from OC perspective? ..................................................................................... 15
Summary.................................................................................................................................................. 15
(Kogut & Zander 2003) – Knowledge of the firm and the evolutionary theory of multinational
corporation ................................................................................................................................................. 17
Abstract .................................................................................................................................................... 17
Direct investment and knowledge as a public good ................................................................................ 17
Knowledge of firm and technology transfer ............................................................................................ 17
Empirical investigation ............................................................................................................................ 17
, Ownership advantages and knowledge.................................................................................................... 18
Conclusion ............................................................................................................................................... 18
L7: Knowledge sharing in MNC – Knowledge perspective ......................................................... 19
(Minbaeva & Michailova 2004) – Knowledge transfer in MNC............................................................ 19
Determinants of knowledge transfer – literature review – conceptual model ......................................... 19
Nature of knowledge – literature review ................................................................................................. 19
Hypothesis - conceptual model............................................................................................................... 20
Conclusion ............................................................................................................................................... 21
(Björkman, Barner-Rasmussen & Li 2004) – managing knowledge transfer in MNC: the impact of
HQ control mechanisms ............................................................................................................................ 22
Model of outflow transfer of subsidiary knowledge ............................................................................... 22
Agency theory and knowledge transfer – P-A problems ......................................................................... 22
Hypothesis ............................................................................................................................................... 22
Discussion/conclusion ............................................................................................................................. 23
L10: The designing multinational ................................................................................................... 24
(Forsgren 2017) – CH 5 Designing MNC: A tale of strategic fit ............................................................ 24
Contingency theory.................................................................................................................................. 24
Bartlett and Ghoshal ................................................................................................................................ 24
How to design the MNC .......................................................................................................................... 24
Strategic fit .............................................................................................................................................. 24
2 approaches in conjunction with contingency theory ............................................................................ 24
Societal role of MNC ............................................................................................................................... 25
(Ghoshal & Nohria 1989)- Internal differentiation within multinational corporations...................... 26
Abstract .................................................................................................................................................... 26
Figure 1: classification of subs context and nature of interdependency and dependency in each context
................................................................................................................................................................. 26
Hypothesis ............................................................................................................................................... 26
Conclusion ............................................................................................................................................... 27
(Zander & Mathews 2010) - Beyond heterarchy: emerging futures of the hypermodern MNC ....... 28
Emerging futures of the hypermodern MNC ........................................................................................... 28
4 subtypes of hypermodern MNC ........................................................................................................... 28
3 general points concerning the emergence of hypermodern MNC ........................................................ 29
Propositions ............................................................................................................................................. 29
Conclusion ............................................................................................................................................... 29
L11: The designing multinational ................................................................................................... 30
(Bartlett & Beamish 2010) - Developing a transnational organization: Managing integration,
responsiveness, and flexibility. .................................................................................................................. 30
Beyond structural fit ................................................................................................................................ 30
Building organizational capability........................................................................................................... 30
Transnational organization ...................................................................................................................... 31
Anatomy, physiology, psychology of transnational ................................................................................ 32
Managing the process of change ............................................................................................................. 32
Transnational org in transition ................................................................................................................. 33
Conclusion ............................................................................................................................................... 33
(Martinez & Jarillo 1989) - The evolution of research on coordination mechanisms in multinational
corporations ................................................................................................................................................ 34
Abstract .................................................................................................................................................... 34
Coordination mechanisms ....................................................................................................................... 34
L14: The networking multinational ............................................................................................... 35
(Forsgren 2017) – CH 6 Networking multinational – tale of business relationships ........................... 35
, Assumption of perspective/business network theory .............................................................................. 35
Internationalization of firm ...................................................................................................................... 35
HQ control over subsidiaries ................................................................................................................... 35
Societal role & role of HQ ....................................................................................................................... 35
(Andersson, Forsgren & Holm 2007) - Balancing subsidiary influence in the federative MNC: A
business network view ............................................................................................................................... 36
Abstract .................................................................................................................................................... 36
The federative MNC ................................................................................................................................ 36
Hypothesis ............................................................................................................................................... 36
Conclusion ............................................................................................................................................... 37
L17: The Politicizing multinational ................................................................................................ 38
(Forsgren 2017) – CH 7 Politicizing multinational: tale of legitimacy & power .................................. 38
Perspective based on institutional theory ................................................................................................ 38
Institutionalization theory and internationalization ................................................................................. 38
How to obtain legitimacy ........................................................................................................................ 38
Institutionalization theory and the multinational firm ............................................................................. 38
Political perspective is different in 5 ways– how the MNC looks in perspective ................................... 39
The political role ...................................................................................................................................... 39
Societal role ............................................................................................................................................. 39
Conclusion ............................................................................................................................................... 40
(Westney 2009) - The multinational firm as an evolutionary system. ................................................... 40
Internal legitimacy ................................................................................................................................... 42
Conclusion ............................................................................................................................................... 42
L18: The Politicizing multinational ................................................................................................ 43
(Anthony, Tony & Anne 2012) – Power, institutions and the cross-national transfer of employment
practices in multinationals ........................................................................................................................ 43
Abstract .................................................................................................................................................... 43
Power and MNC ...................................................................................................................................... 43
Power in a business context ..................................................................................................................... 43
Power capabilities of HQ actors .............................................................................................................. 44
Power capabilities of subsidiary actors ................................................................................................... 44
Conclusion ............................................................................................................................................... 45
(Kostova & Zaheer 1999) - Organizational Legitimacy under Conditions of Complexity: The
Case of the Multinational Enterprise .................................................................................................. 46
Abstract .................................................................................................................................................... 46
Introduction to legitimization .................................................................................................................. 46
Theoretical background ........................................................................................................................... 46
Proposition ............................................................................................................................................... 47
Discussion/conclusion ............................................................................................................................. 48
(Robson Sø 2009) - The Impact of Cross-Border Mergers on the Co-Decision-Making Process:
The Case of a Danish Company ............................................................................................................ 49
Abstract .................................................................................................................................................... 49
Findings ................................................................................................................................................... 49
Discussion/conclusion ............................................................................................................................. 49
L21: New forms of MNC ................................................................................................................. 50
(Gulati & Kletter 2005) - Shrinking core, expanding periphery: The relational architecture of high-
performing organizations. ......................................................................................................................... 50
Intro ......................................................................................................................................................... 50
Leveraging relational capital ................................................................................................................... 50
Combining the 4 dimensions of relational capital ................................................................................... 52
, Conclusion ............................................................................................................................................... 52
(Zander & Mathews 2010) - Beyond heterarchy: Emerging futures of the hypermodern MNC. ..... 53
L22: Implementing global strategy ................................................................................................ 53
(Birkinshaw, Bouquet & Ambos 2007) - Managing executive attention in the global company ........ 53
Introduction ............................................................................................................................................. 53
Allocating attention across the corporate portfolio ................................................................................. 54
Attracting attention with weight .............................................................................................................. 55
Attracting attention with voice ................................................................................................................ 55
Threat of strategic isolation ..................................................................................................................... 55
Refocusing executive attention ................................................................................................................ 55
managing attention in global company – conclusion .............................................................................. 56
(Boyett & Currie 2004)- Middle managers moulding international strategy. ..................................... 57
Abstract .................................................................................................................................................... 57
Introduction ............................................................................................................................................. 57
Empirical findings ................................................................................................................................... 58
Conclusion ............................................................................................................................................... 58
L1: Introduction ................................................................................................................................. 5
(Forsgren 2017) Book – CH 1: The multinational firm: a beauty or a beast? ....................................... 5
Bright Side ................................................................................................................................................. 5
Dark side .................................................................................................................................................... 5
Different perspectives of MNC ................................................................................................................. 5
Empirical phenomenon .............................................................................................................................. 5
Beauty or beast?......................................................................................................................................... 6
L2: Theoretical perspectives on the MNC: An overview ............................................................... 7
(Forsgren 2017) Book – CH 2: The dominating multinational: A tale of market power ...................... 7
Adequate Portfolio theory to explain multination firm and FDI ............................................................... 7
Hymers theory ........................................................................................................................................... 7
The negative impact of market imperfection/ market power .................................................................... 7
Hymers Perception of multinational firms ................................................................................................ 7
The multinational enterprise as an organization (Westney et al. 2009).................................................. 8
Abstract ...................................................................................................................................................... 8
Basic assumption ....................................................................................................................................... 8
Internal selection mechanism – 3 approaches ........................................................................................... 8
Environmental pressures for global integration and local responsiveness ................................................ 8
Challenges for the future ........................................................................................................................... 9
Key take away – conclusion – FOCUS HAS CHANGED ........................................................................ 9
L3: The coordinating multinational ............................................................................................... 10
(Forsgren 2017) Book – CH 3: The coordinating multinational; a tale of cost efficiency ................... 10
Internalization theory ............................................................................................................................... 10
Transaction cost economics – TCE ......................................................................................................... 10
How to minimize transaction costs .......................................................................................................... 10
The issue of control in internalization theory – Monitoring is keyword ................................................. 10
Global factory and internalization theory ................................................................................................ 11
International integration and coordination in the global factory (Buckley 2011) ............................... 12
Global factory .......................................................................................................................................... 12
Global factory objectives: ........................................................................................................................ 12
Vertical integration – key explanations ................................................................................................... 13
Horizontal integration – coordination...................................................................................................... 13
Conclusion ............................................................................................................................................... 13
L6: The Knowing multinational ..................................................................................................... 14
(Forsgren 2017) Book – CH 4: The Knowing multinational; a tale of value creation ......................... 14
The organizational capability (OC) perspective ...................................................................................... 14
OC perspective on FDI ............................................................................................................................ 14
Knowledge transfer issues by 3 theories – entry mode choice ................................................................ 14
The societal role of OC perspective ........................................................................................................ 15
What does firm look like from OC perspective? ..................................................................................... 15
Summary.................................................................................................................................................. 15
(Kogut & Zander 2003) – Knowledge of the firm and the evolutionary theory of multinational
corporation ................................................................................................................................................. 17
Abstract .................................................................................................................................................... 17
Direct investment and knowledge as a public good ................................................................................ 17
Knowledge of firm and technology transfer ............................................................................................ 17
Empirical investigation ............................................................................................................................ 17
, Ownership advantages and knowledge.................................................................................................... 18
Conclusion ............................................................................................................................................... 18
L7: Knowledge sharing in MNC – Knowledge perspective ......................................................... 19
(Minbaeva & Michailova 2004) – Knowledge transfer in MNC............................................................ 19
Determinants of knowledge transfer – literature review – conceptual model ......................................... 19
Nature of knowledge – literature review ................................................................................................. 19
Hypothesis - conceptual model............................................................................................................... 20
Conclusion ............................................................................................................................................... 21
(Björkman, Barner-Rasmussen & Li 2004) – managing knowledge transfer in MNC: the impact of
HQ control mechanisms ............................................................................................................................ 22
Model of outflow transfer of subsidiary knowledge ............................................................................... 22
Agency theory and knowledge transfer – P-A problems ......................................................................... 22
Hypothesis ............................................................................................................................................... 22
Discussion/conclusion ............................................................................................................................. 23
L10: The designing multinational ................................................................................................... 24
(Forsgren 2017) – CH 5 Designing MNC: A tale of strategic fit ............................................................ 24
Contingency theory.................................................................................................................................. 24
Bartlett and Ghoshal ................................................................................................................................ 24
How to design the MNC .......................................................................................................................... 24
Strategic fit .............................................................................................................................................. 24
2 approaches in conjunction with contingency theory ............................................................................ 24
Societal role of MNC ............................................................................................................................... 25
(Ghoshal & Nohria 1989)- Internal differentiation within multinational corporations...................... 26
Abstract .................................................................................................................................................... 26
Figure 1: classification of subs context and nature of interdependency and dependency in each context
................................................................................................................................................................. 26
Hypothesis ............................................................................................................................................... 26
Conclusion ............................................................................................................................................... 27
(Zander & Mathews 2010) - Beyond heterarchy: emerging futures of the hypermodern MNC ....... 28
Emerging futures of the hypermodern MNC ........................................................................................... 28
4 subtypes of hypermodern MNC ........................................................................................................... 28
3 general points concerning the emergence of hypermodern MNC ........................................................ 29
Propositions ............................................................................................................................................. 29
Conclusion ............................................................................................................................................... 29
L11: The designing multinational ................................................................................................... 30
(Bartlett & Beamish 2010) - Developing a transnational organization: Managing integration,
responsiveness, and flexibility. .................................................................................................................. 30
Beyond structural fit ................................................................................................................................ 30
Building organizational capability........................................................................................................... 30
Transnational organization ...................................................................................................................... 31
Anatomy, physiology, psychology of transnational ................................................................................ 32
Managing the process of change ............................................................................................................. 32
Transnational org in transition ................................................................................................................. 33
Conclusion ............................................................................................................................................... 33
(Martinez & Jarillo 1989) - The evolution of research on coordination mechanisms in multinational
corporations ................................................................................................................................................ 34
Abstract .................................................................................................................................................... 34
Coordination mechanisms ....................................................................................................................... 34
L14: The networking multinational ............................................................................................... 35
(Forsgren 2017) – CH 6 Networking multinational – tale of business relationships ........................... 35
, Assumption of perspective/business network theory .............................................................................. 35
Internationalization of firm ...................................................................................................................... 35
HQ control over subsidiaries ................................................................................................................... 35
Societal role & role of HQ ....................................................................................................................... 35
(Andersson, Forsgren & Holm 2007) - Balancing subsidiary influence in the federative MNC: A
business network view ............................................................................................................................... 36
Abstract .................................................................................................................................................... 36
The federative MNC ................................................................................................................................ 36
Hypothesis ............................................................................................................................................... 36
Conclusion ............................................................................................................................................... 37
L17: The Politicizing multinational ................................................................................................ 38
(Forsgren 2017) – CH 7 Politicizing multinational: tale of legitimacy & power .................................. 38
Perspective based on institutional theory ................................................................................................ 38
Institutionalization theory and internationalization ................................................................................. 38
How to obtain legitimacy ........................................................................................................................ 38
Institutionalization theory and the multinational firm ............................................................................. 38
Political perspective is different in 5 ways– how the MNC looks in perspective ................................... 39
The political role ...................................................................................................................................... 39
Societal role ............................................................................................................................................. 39
Conclusion ............................................................................................................................................... 40
(Westney 2009) - The multinational firm as an evolutionary system. ................................................... 40
Internal legitimacy ................................................................................................................................... 42
Conclusion ............................................................................................................................................... 42
L18: The Politicizing multinational ................................................................................................ 43
(Anthony, Tony & Anne 2012) – Power, institutions and the cross-national transfer of employment
practices in multinationals ........................................................................................................................ 43
Abstract .................................................................................................................................................... 43
Power and MNC ...................................................................................................................................... 43
Power in a business context ..................................................................................................................... 43
Power capabilities of HQ actors .............................................................................................................. 44
Power capabilities of subsidiary actors ................................................................................................... 44
Conclusion ............................................................................................................................................... 45
(Kostova & Zaheer 1999) - Organizational Legitimacy under Conditions of Complexity: The
Case of the Multinational Enterprise .................................................................................................. 46
Abstract .................................................................................................................................................... 46
Introduction to legitimization .................................................................................................................. 46
Theoretical background ........................................................................................................................... 46
Proposition ............................................................................................................................................... 47
Discussion/conclusion ............................................................................................................................. 48
(Robson Sø 2009) - The Impact of Cross-Border Mergers on the Co-Decision-Making Process:
The Case of a Danish Company ............................................................................................................ 49
Abstract .................................................................................................................................................... 49
Findings ................................................................................................................................................... 49
Discussion/conclusion ............................................................................................................................. 49
L21: New forms of MNC ................................................................................................................. 50
(Gulati & Kletter 2005) - Shrinking core, expanding periphery: The relational architecture of high-
performing organizations. ......................................................................................................................... 50
Intro ......................................................................................................................................................... 50
Leveraging relational capital ................................................................................................................... 50
Combining the 4 dimensions of relational capital ................................................................................... 52
, Conclusion ............................................................................................................................................... 52
(Zander & Mathews 2010) - Beyond heterarchy: Emerging futures of the hypermodern MNC. ..... 53
L22: Implementing global strategy ................................................................................................ 53
(Birkinshaw, Bouquet & Ambos 2007) - Managing executive attention in the global company ........ 53
Introduction ............................................................................................................................................. 53
Allocating attention across the corporate portfolio ................................................................................. 54
Attracting attention with weight .............................................................................................................. 55
Attracting attention with voice ................................................................................................................ 55
Threat of strategic isolation ..................................................................................................................... 55
Refocusing executive attention ................................................................................................................ 55
managing attention in global company – conclusion .............................................................................. 56
(Boyett & Currie 2004)- Middle managers moulding international strategy. ..................................... 57
Abstract .................................................................................................................................................... 57
Introduction ............................................................................................................................................. 57
Empirical findings ................................................................................................................................... 58
Conclusion ............................................................................................................................................... 58
