The multinational enterprise as an internal market system
This paper builds on Birkinshaw's model of multinational enterprise (MNE) as an internal market system [Birkinshaw, J. (2000). Entrepreneurship in the global firm. London: Sage]. This model addresses the issues related to the emergence of market-based mechanisms of coordination within the MNEs and the strategic decisions that affect internal competition. Birkinshaw argues that subsidiaries simultaneously participate in three different internal markets within an MNE: a market for intermediate goods and services, one for charters and another for competencies and practices. The goal of the paper is to expand Birkinshaw's concept of internal market and analyze the logic behind internal competition by considering more fully existing literature and developing an organizing framework to position such a model within that literature. There is specific focus on discussing how the internal market model relates to modern network-based configurations of the MNE. In addition, the study shows that factors affecting the extent to which each of the three internal markets is established can be better understood if we link such a model to the contributions developed by three mainstreams of research: internalization theory, resource-based view and organizational learning literature.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 15 (2006)
Issue (Month): 3 (June)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Foss, Nicolai J. & Pedersen, Torben, 2000.
"Transferring Knowledge in MNCs: The Role of Sources of Subsidiary Knowledge and Organizational Context,"
6-2000, Copenhagen Business School, Department of International Economics and Management.
- Foss, Nicolai J. & Pedersen, Torben, 2002. "Transferring knowledge in MNCs: The role of sources of subsidiary knowledge and organizational context," Journal of International Management, Elsevier, vol. 8(1), pages 49-67.
- Nicolai J. Foss & Torben Pedersen, . "Transferring Knowledge in MNCs: The Role of Sources of Subsidiary Knowledge and Organizational Context," IVS/CBS Working Papers 00-12, Department of Industrial Economics and Strategy, Copenhagen Business School.
- Williamson, Oliver E., 1992. "Markets, hierarchies, and the modern corporation: An unfolding perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 17(3), pages 335-352, May.
- Laura Poppo, 2003. "The Visible Hands of Hierarchy within the M-Form: An Empirical Test of Corporate Parenting of Internal Product Exchanges," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 403-430, 03.
- Alan M Rugman & Alain Verbeke, 2003. "Extending the theory of the multinational enterprise: internalization and strategic management perspectives," Journal of International Business Studies, Palgrave Macmillan, vol. 34(2), pages 125-137, March.
- Geoffrey Hodgson, 2002. "The Legal Nature of the Firm and the Myth of the Firm-Market Hybrid," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 37-60.
- Fahy, John, 2002. "A resource-based analysis of sustainable competitive advantage in a global environment," International Business Review, Elsevier, vol. 11(1), pages 57-77, February.
- Masten, Scott E. & Meehan, James Jr. & Snyder, Edward A., 1989. "Vertical integration in the U.S. auto industry : A note on the influence of transaction specific assets," Journal of Economic Behavior & Organization, Elsevier, vol. 12(2), pages 265-273, October.
- Alan M. Rugman & Sheila Douglas, 1986. "The Strategic Management of Multinationals and World Product Mandating," Canadian Public Policy, University of Toronto Press, vol. 12(2), pages 320-328, June.
- Schlegelmilch, Bodo B. & Chini, Tina Claudia, 2003. "Knowledge transfer between marketing functions in multinational companies: a conceptual model," International Business Review, Elsevier, vol. 12(2), pages 215-232, April.
- Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
- Paul Joskow, 1984.
"Vertical Integration and Long Term Contracts: The Case of Coal Burning Electric Generating Plants,"
361, Massachusetts Institute of Technology (MIT), Department of Economics.
- Joskow, Paul L, 1985. "Vertical Integration and Long-term Contracts: The Case of Coal-burning Electric Generating Plants," Journal of Law, Economics and Organization, Oxford University Press, vol. 1(1), pages 33-80, Spring.
- Andersson, Ulf & Forsgren, Mats & Pedersen, Torben, 2001. "Subsidiary performance in multinational corporations: the importance of technology embeddedness," International Business Review, Elsevier, vol. 10(1), pages 3-23, February.
- Alessandro Lomi, 1997. "Markets with Hierarchies and the Network Structure of Organizational Communities," Journal of Management and Governance, Springer, vol. 1(1), pages 49-66, March.
- Kendall Roth & Allen J Morrison, 1992. "Implementing Global Strategy: Characteristics of Global Subsidiary Mandates," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 715-735, December.
- Spiller, Pablo T, 1985. "On Vertical Mergers," Journal of Law, Economics and Organization, Oxford University Press, vol. 1(2), pages 285-312, Fall.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
- Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 467-495, September.
- Shelanski, Howard A & Klein, Peter G, 1995. "Empirical Research in Transaction Cost Economics: A Review and Assessment," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(2), pages 335-61, October.
- Joskow, Paul L, 1987. "Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets," American Economic Review, American Economic Association, vol. 77(1), pages 168-85, March.
- Mudambi, Ram, 1999. "MNE internal capital markets and subsidiary strategic independence," International Business Review, Elsevier, vol. 8(2), pages 197-211, April.
- Linda Allen & Christos Pantzalis, 1996. "Valuation of the operating Flexibility of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 633-653, December.
- Menard, Claude, 1995. "Markets as institutions versus organizations as markets? Disentangling some fundamental concepts," Journal of Economic Behavior & Organization, Elsevier, vol. 28(2), pages 161-182, October.
- Alan M Rugman & Alain Verbeke, 1992. "A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 761-771, December.
- Andersen, Otto & Suat Kheam, Low, 1998. "Resource-based theory and international growth strategies: an exploratory study," International Business Review, Elsevier, vol. 7(2), pages 163-184, April.
- Peter J Buckley, 1988. "The Limits of Explanation: Testing the Internalization Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 19(2), pages 181-193, June.
- Eccles, Robert G., 1981. "The quasifirm in the construction industry," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 335-357, December.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:15:y:2006:i:3:p:253-277. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.