A dynamic capabilities-based entrepreneurial theory of the multinational enterprise

Abstract

This paper develops a dynamic capabilities-based theory of the multinational enterprise (MNE). It first reviews scholarship on the MNE, with a focus on what has come to be known as "internalization" theory. One prong of this theory develops contractual/transaction cost-informed governance perspectives; and another develops technology transfer and capabilities perspectives. In this paper, it is suggested that the latter has been somewhat neglected. However, if fully integrated as part of a more complete approach, it can buttress transaction cost/governance issues and expand the range of phenomena that can be explained. In this more integrated framework, dynamic capabilities coupled with good strategy are seen as necessary to sustain superior enterprise performance, especially in fast-moving global environments. Entrepreneurial management and transformational leadership are incorporated into a capabilities theory of the MNE. The framework is then used to explain how strategy and dynamic capabilities together determine firm-level sustained competitive advantage in global environments. It is suggested that this framework complements contract-based perspectives on the MNE and can help integrate international management and international business perspectives.

Beyond categorization: New directions for theory development about entrepreneurial internationalization

“…Santangelo and Meyer (2011) show that positionbuilding processes are not necessarily continuous and there can be post-entry adjustments to a firm's commitment to a market opportunity. Teece (2014) argues that the pursuit of market opportunities may not be merely a recognition and assessment activity; when foreign markets do not exist for a firm's products and services, they need to be created and this involves building a supportive market ecosystem. Thus scholars should not only consider firmlevel internationalization as an event with duration, but should also consider foreign market creation as an important outcome to be explained.…”

“…These dynamics are likely to involve path dependencies (Sydow, Schreyögg, & Koch, 2009) and routines (Prashantham & Floyd, 2012;Teece, 2014) that develop over time. This happens because effective processes are self-reinforcing and persist.…”

Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

“…This 'reverse' technology transfer generates opportunities for the parent by finding useful applications of the geographically dispersed knowledge and capabilities their subsidiaries accumulate and create (Teece, 2014). The rationale is that subsidiaries act as 'listening posts' that capture the advanced knowledge from abroad and then augment home-based innovation by transferring it back to the parent (Hedge & Hicks, 2008).…”

Aprendizagem organizacional e teoria neoinstitucional à luz da escola comportamental de negócios internacionais

“…Essas empresas operam em múltiplos ambientes institucionais, deliberando a respeito de uma heterogeneidade de contextos nesses cenários, que restringem ou oportunizam negócios (CANTWELL; DUNNING; LUNDAN, 2010). Além disso, lidam com estruturas cada vez mais complexas entre matriz e subsidiárias, exigindo o desenvolvimento de capacidades dinâmicas que possam auxiliar as firmas a obter e consolidar vantagens competitivas (TEECE, 2014).…”