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Multinational Corporations (MNCs) and Enterprises (MNEs)

Author

Listed:
  • Ulrike Mayrhofer

    (Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

  • Christiane Prange

Abstract

This article focuses on key characteristics of multinational companies (MNCs) in a global business environment. After the definition of the multinational company, the authors present an overview of the geographic origin of MNCs and trends concerning foreign direct investments (FDI). They analyze location strategies followed by MNCs and explain the growing importance of MNCs from emerging economies. Several theoretical perspectives contribute to a better understanding of MNCs: industrial organization theory, transaction cost theory, organizational capability theory, contingency theory, business network theory and institutionalization theory. A typology of different conceptualizations (heterarchical, transnational and meta-national companies) emphasizes their heterogeneous and changing character. Recent trends highlight the increasing fragmentation of the value-chain and the development of 'global factories'.

Suggested Citation

  • Ulrike Mayrhofer & Christiane Prange, 2014. "Multinational Corporations (MNCs) and Enterprises (MNEs)," Post-Print hal-00974078, HAL.
    • Handle: RePEc:hal:journl:hal-00974078
    DOI: 10.1002/9781118785317.weom060148
    as

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