This article reviews contemporary mainstream and radical theories of the multinational enterprise (MNE), finding that each research tradition exhibits serious shortcomings. Theories of the MNE dominant in the international business literature are overly economistic, preventing scholars from considering the significanteven determining-effects of political, military, and cultural factors operating at national, international, and global levels on MNE behavior and performance. Conversely, radical theories of the MNE focus primarily on macroeconomic and noneconomic factors, largely ignoring the firm and industry level dynamics that drive MNE behavior. Despite these differences, we suggest that theoretical space exists in which mainstream and radical insights can be synthesized in order to improve our understanding of the M m . Q 2Burrell and Morgan (1979) hold that mainstream and radical approaches (their actual categories are "functionalism" and "radical structuralism") are largely incommensurable. Donaldson (1985). however, argues that these approaches share many common underlying assumptions and are not necessarily incommensurable in an epistemological sense.