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Abstract
Current trends appear to suggest that globally integrated strategies are the wave of the future for many industries, but no theoretically sound, firm level model explains this situation. International business models explain industry trends from economic perspectives, and organizational theory is beginning to examine the organizing principles of multinational firms. However, a gap exists in explaining the strategic motivations of multinational firms as they expand and integrate worldwide. This article develops a capability driven, as opposed to market driven, framework of multinational strategy. This contingent framework explains the organizational consequences of international expansion and global integration depending on the capability types, capability strategies, and multinational strategies of the multinational firm.
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Abstract
Current trends appear to suggest that globally integrated strategies are the wave of the future for many industries, but no theoretically sound, firm level model explains this situation. International business models explain industry trends from economic perspectives, and organizational theory is beginning to examine the organizing principles of multinational firms. However, a gap exists in explaining the strategic motivations of multinational firms as they expand and integrate worldwide. This article develops a capability driven, as opposed to market driven, framework of multinational strategy. This contingent framework explains the organizational consequences of international expansion and global integration depending on the capability types, capability strategies, and multinational strategies of the multinational firm.