Digitalized service multinationals and international business theory

Hennart, Jean‐François

doi:10.1057/s41267-019-00256-2

Cited by 71 publications

(63 citation statements)

References 40 publications

(47 reference statements)

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“…At the same time, there is always a need for prudence and commensurability in developing new theories. First, even though it was originally developed to explain the emergence of large manufacturing MNEs in the post-WWII era, the basic analytical approach of the theory is arguably still applicable to explaining the boundary choices by other types of MNEs in different time periods such as those from emerging economies (Verbeke & Kano, 2015), sponsored by the state (Grøgaard et al, 2019), run by a single family (Hennart et al, 2017), or focusing on digital services (Banalieva & Dhanaraj, 2019;Hennart, 2019). Therefore, a judicious approach to studying a seemingly new type of transaction or firm is perhaps first to assess carefully whether internalization theory still has substantial explanatory power to effectively explain the 'new' governance mode, transaction, or firm.…”

Section: Discussionmentioning

confidence: 99%

“…If they are mostly endogenous to experience, what does that say about the possibility of establishing causality, an important criterion for which is temporal precedence? Indeed, Hennart (2019) suggests that a theory based on such FSAs borders on the tautological, because they can only be observed ex post through the degree of the success of the MNE's international operations, reflecting a more fundamental issue that also applies to the wider realm of the RBV (Priem & Butler, 2001;Cockburn, Henderson, & Stern, 2000). Perhaps this implies that we need to take one step further back and ask which firm-or location-specific factors are likely to influence O TI and O TE .…”

Section: Boundary-augmenting Fsas: Antecedents and Consequencesmentioning

confidence: 99%

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Applying and advancing internalization theory: The multinational enterprise in the twenty-first century

et al. 2019

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Internalization theory has provided a resilient analytical framework that explicitly or implicitly underlines much of International Business scholarship. Internalization theory is not a monolithic body of knowledge; instead, it has devolved into several 'streams', each of which focuses on the interests of particular epistemic communities, while also acting as a more generic organizing framework for those more broadly interested in its application to real-world challenges. Following a review of the various streams, we trace the frontiers of current research of the broader internalization framework and identify emerging themes raised by the papers in the special issue. These include transaction cost considerations in the bundling and recombination of assets across diverse contexts, the growing relevance of quasi-internalization, the theoretical challenges of (bounded) rationality for internalization theory, and the increasing disconnect between ownership, control and responsibility. These developments point to new research frontiers for scholars looking to apply or advance internalization theory.

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Section: Discussionmentioning

confidence: 99%

Section: Boundary-augmenting Fsas: Antecedents and Consequencesmentioning

confidence: 99%

Applying and advancing internalization theory: The multinational enterprise in the twenty-first century

et al. 2019

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“…1372-1387. Hennart shows the importance of network advantage (Hennart, 2019(Hennart, , pp. 1388(Hennart, -1400.…”

Section: Literature Reviewmentioning

confidence: 99%

Idea management system application types in local and global context

Miķelsone

Spilbergs

Volkova

et al. 2020

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Research background: Web-based idea management systems provide local and global idea management potential for many well-known and established companies, such as Boeing, Panasonic, Volkswagen, Volvo and P&G. Based on previous research done by the authors, there is an existing gap in the available literature and research on the subject: (1) there is a lack of evidence on how different idea managements system types materializes in local and global contexts; (2) there is a lack of research on how frequent these systems are applied in the global context. Purpose of the article: The paper aims to clarify which of the web-based idea management system types produce significantly better results when applied in the local and in the global context. Methods: The following research attempts to close the existing research gap empirically by conducting a survey. In the research paper analysis of 447 responses was included — global companies that use idea management systems. The respondents were reached through idea management system providers. Findings & Value added: The research results suggest that there is a difference between the intensity of different web-based idea management system types (based on involved sources and process focus) of application if these systems are used for the global or local context. The study contributes theoretically and practically to the discussion about the potential idea management system application types in different contexts.

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“…An efficient solution can then be to license or franchise SMEs. This is done by some fast food companies that enter into franchise contracts with a large number of SMEs; by credit card branders such as Visa and MasterCard that use local banks to sign up customers and process payments; and by some internet platforms, such as Uber and Lyft, that rely on local independent drivers rather than company employees (Hennart, 2019b). Vertical integration into local production, on the other hand, will be chosen when the costs of direct monitoring of employee-staffed outlets are not excessive while quality debasement by franchisees cannot be controlled by franchising contracts (Hennart, 2010).…”

Section: Differences In Optimal Scale Between Stagesmentioning

confidence: 99%

More than intent: A bundling model of MNE–SME interactions

Hennart

2020

J Int Bus Stud

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As a counterpoint to Prashantham and Birkinshaw, I present an alternative model of MNE-SME cooperation where either type of firms can take the role of content provider or distributor. I argue that MNEs will interact with SMEs when there are differences in optimal scale between the content creation and distribution stages of the value chain, and it is not feasible or efficient for either party to vertically integrate between these two stages. I then build two 2 9 2 bundling models, one in which the SME provides content and the MNE distributes it, and another with the reverse configuration. In these 2 9 2s the axes are the transactional properties of the two complementary inputs, content and distribution, that MNEs and SMEs bundle to create value. I show that these models can explain the forms taken by MNE-SME cooperation and their dynamics.

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Digitalized service multinationals and international business theory

Cited by 71 publications

References 40 publications

Applying and advancing internalization theory: The multinational enterprise in the twenty-first century

Applying and advancing internalization theory: The multinational enterprise in the twenty-first century

Idea management system application types in local and global context

More than intent: A bundling model of MNE–SME interactions

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