A double network approach to international production

This paper discusses some key implications of the view, emerged in the literature, that multinational firms organise their activities by connecting internal networks of subsidiaries with external networks of contractual relationships. It is argued that this view provides some useful elements for a more comprehensive theory of multinational change and for the analysis of the impact of internationalisation on economic systems of origin and destination. A ?double network approach? to international production implies a fundamental change of focus from the ?center? of multinationals ? the headquarters ? to the ?periphery? of transnational organisations, and from individual decision making units to collective choices involving a variety of inter-linked actors. Moreover, it highlights the complexities of decision making processes associated to the increasing number and interdependencies of internal and external actors involved in international production.