Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.12
Alvaro Cuervo‐Cazurra, Alicia Rodríguez, C. Un
This chapter analyzes the internationalization of emerging-market multinational enterprises (EMNEs) to clarify past contributions and outline suggestions for future research. We critically review the novelty of the phenomenon associated with the foreign expansion of firms from emerging markets, the new theoretical concepts introduced from analyzing these firms, and the new explanations related to their internationalization. We propose that future research can advance our understanding of these firms by studying how the underdevelopment of the home country’s economy and institutions influences firm internationalization. We specifically discuss four areas that can yield promising insights for internationalization research: frugal innovation, contractual innovation, upgrading escape, and institutional escape.
{"title":"Internationalization of Emerging-Market Multinationals","authors":"Alvaro Cuervo‐Cazurra, Alicia Rodríguez, C. Un","doi":"10.1093/oxfordhb/9780198868378.013.12","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.12","url":null,"abstract":"This chapter analyzes the internationalization of emerging-market multinational enterprises (EMNEs) to clarify past contributions and outline suggestions for future research. We critically review the novelty of the phenomenon associated with the foreign expansion of firms from emerging markets, the new theoretical concepts introduced from analyzing these firms, and the new explanations related to their internationalization. We propose that future research can advance our understanding of these firms by studying how the underdevelopment of the home country’s economy and institutions influences firm internationalization. We specifically discuss four areas that can yield promising insights for internationalization research: frugal innovation, contractual innovation, upgrading escape, and institutional escape.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132358573","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.15
Ulf R. Andersson, M. Forsgren, Ulf Holm
In the beginning of the twenty-first century, Andersson, Forsgren, and Holm (2001, 2002) published two highly cited articles on the relationship between network embeddedness and the evolution of multinational enterprise (MNE) subsidiary roles. These articles paved the way for research examining the importance of market knowledge acquired by an MNE subsidiary through being embedded in local networks, which would, in time, be expected to positively influence the competence development of other MNE units. The present chapter presents an overview of the key contributions of these seminal papers, followed by a discussion about the theoretical and empirical advancements concerning the relationship between embeddedness and subsidiary competence development. We provide suggestions around how to conceptualize competence development and knowledge transfer in relation to subsidiary external embeddedness and highlight areas where more research is needed.
{"title":"Subsidiaries as Sources for Learning in Multinational Enterprises","authors":"Ulf R. Andersson, M. Forsgren, Ulf Holm","doi":"10.1093/oxfordhb/9780198868378.013.15","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.15","url":null,"abstract":"In the beginning of the twenty-first century, Andersson, Forsgren, and Holm (2001, 2002) published two highly cited articles on the relationship between network embeddedness and the evolution of multinational enterprise (MNE) subsidiary roles. These articles paved the way for research examining the importance of market knowledge acquired by an MNE subsidiary through being embedded in local networks, which would, in time, be expected to positively influence the competence development of other MNE units. The present chapter presents an overview of the key contributions of these seminal papers, followed by a discussion about the theoretical and empirical advancements concerning the relationship between embeddedness and subsidiary competence development. We provide suggestions around how to conceptualize competence development and knowledge transfer in relation to subsidiary external embeddedness and highlight areas where more research is needed.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116873480","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.4
R. Mudambi
By now, it is generally accepted that the two key dimensions of international business (IB) strategy are location and control. Multinational enterprises (MNEs) must therefore decide where to locate their international operations and how to control their activities there. Virtually every research question associated with IB strategy is related to one or both of these dimensions. This chapter will focus on the location dimension, while recognizing that the control dimension is its ever-present complement. Historically, MNEs expanded into international locations in order to seek local, natural resources unavailable in their home countries. However, at present, it is the MNEs’ search for knowledge resources that dominates their location strategies. Over the last decade, the rise of global value chains (GVCs) has become one of the primary factors motivating scholars to integrate insights from IB and economic geography to develop a more holistic view of the location dimension of MNE strategy. We discuss the evolution of key intellectual ideas in the area of IB location strategies to then propose a future research agenda.
{"title":"Location and International Strategy Formation","authors":"R. Mudambi","doi":"10.1093/oxfordhb/9780198868378.013.4","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.4","url":null,"abstract":"By now, it is generally accepted that the two key dimensions of international business (IB) strategy are location and control. Multinational enterprises (MNEs) must therefore decide where to locate their international operations and how to control their activities there. Virtually every research question associated with IB strategy is related to one or both of these dimensions. This chapter will focus on the location dimension, while recognizing that the control dimension is its ever-present complement. Historically, MNEs expanded into international locations in order to seek local, natural resources unavailable in their home countries. However, at present, it is the MNEs’ search for knowledge resources that dominates their location strategies. Over the last decade, the rise of global value chains (GVCs) has become one of the primary factors motivating scholars to integrate insights from IB and economic geography to develop a more holistic view of the location dimension of MNE strategy. We discuss the evolution of key intellectual ideas in the area of IB location strategies to then propose a future research agenda.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131074301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.21
A. Goerzen, A. V. Assche
The drivers of economic globalization are leading many firms to disaggregate and redistribute their operations by outsourcing and offshoring. The result of the process is to create global value chains (GVCs) that are a collection of loosely affiliated, spatially distributed firms engaged in bringing products from raw materials to end use. A key insight from previous research is that GVCs are typically orchestrated by multinational enterprises (MNEs) given their control over key markets or critical technologies. Yet, very little is known about the emerging phenomenon in which MNEs appear to control production along the GVC without ownership of those assets. This is an important issue as consumers, regulators, and civil society are holding flagship MNEs increasingly responsible for behavior and performance along their entire GVC. This chapter analyzes GVC governance to highlight the fact that MNEs often require specific types of capabilities that relate to the context of their industry and the GVC in which they are embedded. The dynamic capabilities approach is extended to explore the ways and means of GVC governance by lead MNEs to shed new light on the contextual differences that influence the resources and capabilities required to improve GVC performance.
{"title":"Global value Chain Governance","authors":"A. Goerzen, A. V. Assche","doi":"10.1093/oxfordhb/9780198868378.013.21","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.21","url":null,"abstract":"The drivers of economic globalization are leading many firms to disaggregate and redistribute their operations by outsourcing and offshoring. The result of the process is to create global value chains (GVCs) that are a collection of loosely affiliated, spatially distributed firms engaged in bringing products from raw materials to end use. A key insight from previous research is that GVCs are typically orchestrated by multinational enterprises (MNEs) given their control over key markets or critical technologies. Yet, very little is known about the emerging phenomenon in which MNEs appear to control production along the GVC without ownership of those assets. This is an important issue as consumers, regulators, and civil society are holding flagship MNEs increasingly responsible for behavior and performance along their entire GVC. This chapter analyzes GVC governance to highlight the fact that MNEs often require specific types of capabilities that relate to the context of their industry and the GVC in which they are embedded. The dynamic capabilities approach is extended to explore the ways and means of GVC governance by lead MNEs to shed new light on the contextual differences that influence the resources and capabilities required to improve GVC performance.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115554447","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.13
S. Estrin, Jing Li, D. Shapiro
The emergence and importance of state-owned multinational enterprises (SOMNEs) has generated considerable academic and policy interest. Previous ideas around the fact that these MNEs do not possess the necessary resources and capabilities to compete with privately-owned international market players are challenged. The purpose of this chapter is to examine the theoretical perspectives and empirical evidence related to SOMNEs and to identify potential future research directions. In particular, the chapter discusses the boundary conditions that can limit what is often referred to as “the liability of stateness,” with particular reference to hybrid forms of ownership and political and institutional arrangements that exist in emerging markets. The analysis of the current evidence leads us to consider the possibility that, while some SOMNEs have become commercially competitive, other SOMNEs may have emerged with the primary purpose of extending state interests abroad.
{"title":"State-Owned Multinational Enterprises","authors":"S. Estrin, Jing Li, D. Shapiro","doi":"10.1093/oxfordhb/9780198868378.013.13","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.13","url":null,"abstract":"The emergence and importance of state-owned multinational enterprises (SOMNEs) has generated considerable academic and policy interest. Previous ideas around the fact that these MNEs do not possess the necessary resources and capabilities to compete with privately-owned international market players are challenged. The purpose of this chapter is to examine the theoretical perspectives and empirical evidence related to SOMNEs and to identify potential future research directions. In particular, the chapter discusses the boundary conditions that can limit what is often referred to as “the liability of stateness,” with particular reference to hybrid forms of ownership and political and institutional arrangements that exist in emerging markets. The analysis of the current evidence leads us to consider the possibility that, while some SOMNEs have become commercially competitive, other SOMNEs may have emerged with the primary purpose of extending state interests abroad.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116036865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.17
Carlos M. P. Sousa, Qun Tan
By now, it is known that multinational enterprises (MNEs) make important decisions associated with entering international markets for the first time, dealing with competitors in their host markets via their international subsidiaries, exploiting firm-specific resources while acquiring new ones in order to organize their global value chains most effectively. However, firms also divest their operations and exit foreign market operations. The stigma associated with divesting from international markets previously entered may cause managerial decision makers to become more risk-averse, or to be removed from their current positions and replaced with other, more internationally experienced managers. The chapter discusses the antecedents and outcomes associated with the decision to divest international operations. It is proposed that a more comprehensive understanding of the divestment process can be achieved by understanding organizational and individual behavior through the lens of attribution theory.
{"title":"Looking back to move Forward","authors":"Carlos M. P. Sousa, Qun Tan","doi":"10.1093/oxfordhb/9780198868378.013.17","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.17","url":null,"abstract":"By now, it is known that multinational enterprises (MNEs) make important decisions associated with entering international markets for the first time, dealing with competitors in their host markets via their international subsidiaries, exploiting firm-specific resources while acquiring new ones in order to organize their global value chains most effectively. However, firms also divest their operations and exit foreign market operations. The stigma associated with divesting from international markets previously entered may cause managerial decision makers to become more risk-averse, or to be removed from their current positions and replaced with other, more internationally experienced managers. The chapter discusses the antecedents and outcomes associated with the decision to divest international operations. It is proposed that a more comprehensive understanding of the divestment process can be achieved by understanding organizational and individual behavior through the lens of attribution theory.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114478724","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.22
Renato J. Orsato, S. R. Barakat, J. D. de Campos
Sustainability strategies are choices available to managers to align environmental and social investments with the general strategy of the multinational enterprise (MNE). Opportunities to profit from sustainability strategies are available to MNEs of different sizes, in different sectors and stages of the internationalization process. Return on social and environmental investments depends on internal and external circumstances, which can either facilitate or hinder potential opportunities. This chapter discusses sustainability strategies that MNEs implement in both home countries and foreign host markets. Such strategies are based on the analysis of internal capabilities and of the external environment. More than complying with regulations or responding to stakeholder pressures, firms may proactively develop eco-efficiency strategies that reduce costs and environmental impacts, differentiate products and services based on ecological prerogatives, or develop new value propositions through innovative business models and market development. The chapter proposes a set of future research opportunities sitting at the interface between sustainability strategies and the international business decisions of the MNE.
{"title":"Sustainability Strategies","authors":"Renato J. Orsato, S. R. Barakat, J. D. de Campos","doi":"10.1093/oxfordhb/9780198868378.013.22","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.22","url":null,"abstract":"Sustainability strategies are choices available to managers to align environmental and social investments with the general strategy of the multinational enterprise (MNE). Opportunities to profit from sustainability strategies are available to MNEs of different sizes, in different sectors and stages of the internationalization process. Return on social and environmental investments depends on internal and external circumstances, which can either facilitate or hinder potential opportunities. This chapter discusses sustainability strategies that MNEs implement in both home countries and foreign host markets. Such strategies are based on the analysis of internal capabilities and of the external environment. More than complying with regulations or responding to stakeholder pressures, firms may proactively develop eco-efficiency strategies that reduce costs and environmental impacts, differentiate products and services based on ecological prerogatives, or develop new value propositions through innovative business models and market development. The chapter proposes a set of future research opportunities sitting at the interface between sustainability strategies and the international business decisions of the MNE.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116586131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.10
P. Dimitratos
This chapter advances the argument that, together with the international new venture (INV; or, born global (BG) firm), the unit of analysis in international business (IB) strategy should also be the micromultinational enterprise (mMNE). Based on the IB strategy and international entrepreneurship (IE) literatures, the chapter posits that the mMNE is a salient international entrepreneurial firm that has been neglected from most empirical work. The argument is built on an IE literature search and subsequent conceptualization around the dimensions of international entrepreneurial orientation (IEO). It is posited that risk attitude manifested in hefty resource mode commitments (contractual joint ventures and wholly owned subsidiaries) forms a key entrepreneurial dimension that should be a major focus of empirical analysis beyond innovativeness and proactiveness. The main contribution of this chapter is that it delineates the dimensions and manifestations of IEO and advances research in this area. The aim is to persuade the reader that the mMNE should be a focal firm of interest in the IB strategy and entrepreneurship arenas.
{"title":"It’s Not (Only) the International New Venture But (Also) the Micromultinational, Daftie!","authors":"P. Dimitratos","doi":"10.1093/oxfordhb/9780198868378.013.10","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.10","url":null,"abstract":"This chapter advances the argument that, together with the international new venture (INV; or, born global (BG) firm), the unit of analysis in international business (IB) strategy should also be the micromultinational enterprise (mMNE). Based on the IB strategy and international entrepreneurship (IE) literatures, the chapter posits that the mMNE is a salient international entrepreneurial firm that has been neglected from most empirical work. The argument is built on an IE literature search and subsequent conceptualization around the dimensions of international entrepreneurial orientation (IEO). It is posited that risk attitude manifested in hefty resource mode commitments (contractual joint ventures and wholly owned subsidiaries) forms a key entrepreneurial dimension that should be a major focus of empirical analysis beyond innovativeness and proactiveness. The main contribution of this chapter is that it delineates the dimensions and manifestations of IEO and advances research in this area. The aim is to persuade the reader that the mMNE should be a focal firm of interest in the IB strategy and entrepreneurship arenas.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115144778","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.11
Liena Kano, A. Verbeke, Luciano Ciravegna
We infuse new internalization theory (NIT) with insights from family firm research, specifically, micro-foundational drivers of family managers’ decision-making such as socio-emotional wealth (SEW) preferences and bifurcation bias. We argue that the international governance of family firms is best explained through a model that combines efficiency-based logic (rooted in NIT) and affect-based logic (rooted in SEW). Such explanation expands the boundaries of NIT by addressing both international competitive success of family firms vis-à-vis their non-family counterparts and their divergence from efficient international governance and consequent failure in host markets. Disciplined pursuit of functional (as opposed to dysfunctional) aspects of SEW can facilitate the firm’s ability to economize on bounded rationality and reliability and create an environment conducive to value generation in host markets. However, unconstrained pursuit of SEW will lead to governance inefficiencies. Family firms can enhance the functional impact of SEW by implementing anticipative, large-scale strategies to economize on bifurcation bias. Ultimately, the main prediction of NIT holds—only efficient governance will be sustained in the long run.
{"title":"Internationalization of Family Firms","authors":"Liena Kano, A. Verbeke, Luciano Ciravegna","doi":"10.1093/oxfordhb/9780198868378.013.11","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.11","url":null,"abstract":"We infuse new internalization theory (NIT) with insights from family firm research, specifically, micro-foundational drivers of family managers’ decision-making such as socio-emotional wealth (SEW) preferences and bifurcation bias. We argue that the international governance of family firms is best explained through a model that combines efficiency-based logic (rooted in NIT) and affect-based logic (rooted in SEW). Such explanation expands the boundaries of NIT by addressing both international competitive success of family firms vis-à-vis their non-family counterparts and their divergence from efficient international governance and consequent failure in host markets. Disciplined pursuit of functional (as opposed to dysfunctional) aspects of SEW can facilitate the firm’s ability to economize on bounded rationality and reliability and create an environment conducive to value generation in host markets. However, unconstrained pursuit of SEW will lead to governance inefficiencies. Family firms can enhance the functional impact of SEW by implementing anticipative, large-scale strategies to economize on bifurcation bias. Ultimately, the main prediction of NIT holds—only efficient governance will be sustained in the long run.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129035728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-15DOI: 10.1093/oxfordhb/9780198868378.013.19
Pinar Ozcan, Basak Yakis-Douglas
We have a diverse set of descriptions referred to as the “fourth industrial revolution”, Industry 4.0, or the “digital” or “new economy”, indicating that there is a seismic shift under way. Due to digital transformation arising from the combined effect of several digital technologies including IoT, 5G, cloud, blockchain, big data and artificial intelligence, companies today are being transformed, and for many, this transformation comes in ways that they have not experienced before. This may mean that firms entering new markets with digital technologies may be less dependent on mediators and be able to control the delivery of their products or services, while new entrants are likely to gain advantages from exploiting digital platforms. The chapter lays out how the classic principles of international competitive strategy are transformed in today’s markets due to digitalization and provides suggestions in terms of how firms, and particularly multinational enterprises (MNEs), can respond to these transformations.
{"title":"Digitalization and its Strategic Implications for the Multinational Enterprise","authors":"Pinar Ozcan, Basak Yakis-Douglas","doi":"10.1093/oxfordhb/9780198868378.013.19","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198868378.013.19","url":null,"abstract":"We have a diverse set of descriptions referred to as the “fourth industrial revolution”, Industry 4.0, or the “digital” or “new economy”, indicating that there is a seismic shift under way. Due to digital transformation arising from the combined effect of several digital technologies including IoT, 5G, cloud, blockchain, big data and artificial intelligence, companies today are being transformed, and for many, this transformation comes in ways that they have not experienced before. This may mean that firms entering new markets with digital technologies may be less dependent on mediators and be able to control the delivery of their products or services, while new entrants are likely to gain advantages from exploiting digital platforms. The chapter lays out how the classic principles of international competitive strategy are transformed in today’s markets due to digitalization and provides suggestions in terms of how firms, and particularly multinational enterprises (MNEs), can respond to these transformations.","PeriodicalId":213045,"journal":{"name":"The Oxford Handbook of International Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132011822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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