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Reflections on the Hymer thesis and the multinational enterprise

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  • Teece, David J.

Abstract

Understanding the economic function of the multinational enterprise remains a seminal issue. Almost half a century ago, Stephen Hymer initiated serious scholarly inquiry into the theory of multinational enterprise by positing that domestic firms needed special advantages to go global and succeed. However, he failed to fully unlock the foundations of the posited special advantages. Moreover, he sensed that multinational firms could not exist in a (theoretical) world of perfect competition, and wrongfully concluded that pernicious market power must be associated with the overseas activities of the multinational enterprise. This article examines Hymer's contributions and hints at the need for an (intangible) assets/capabilities based analysis of the multinational enterprise.

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  • Teece, David J., 2006. "Reflections on the Hymer thesis and the multinational enterprise," International Business Review, Elsevier, vol. 15(2), pages 124-139, April.
    • Handle: RePEc:eee:iburev:v:15:y:2006:i:2:p:124-139
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    6. Christos N. Pitelis & David J. Teece, 2010. "Cross-border market co-creation, dynamic capabilities and the entrepreneurial theory of the multinational enterprise," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1247-1270, August.
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    10. Angels Pelegrín & Catalina Bolancé, 2011. "Offshoring and company characteristics: some evidence from the analysis of Spanish firm data," Working Papers 2011/16, Institut d'Economia de Barcelona (IEB).
    11. Mie Augier & David J. Teece, 2007. "Dynamic capabilities and multinational enterprise: Penrosean insights and omissions," Management International Review, Springer, vol. 47(2), pages 175-192, March.
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    13. Huda Khan & Joseph Amankwah-Amoah & Richard Lee & Gary Knight & Nazim Hussain, 2024. "Breaking Barriers: How Do the Marketing Capabilities of Emerging-Market Micro-Multinationals Drive Social Innovation?," Management International Review, Springer, vol. 64(4), pages 701-726, August.
    14. Lin, Chinho & Chang, Chia-Chi, 2015. "The effect of technological diversification on organizational performance: An empirical study of S&P 500 manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 575-586.
    15. Joseph A. Clougherty & Jin Uk Kim & Bradley R. Skousen & Florian Szücs, 2017. "The Foundations of International Business: Cross-Border Investment Activity and the Balance between Market-Power and Efficiency Effects," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 340-365, May.
    16. Pitelis, Christos, 2009. "Edith Penrose’s ‘The Theory of the Growth of the Firm’ Fifty Years Later," MPRA Paper 23180, University Library of Munich, Germany.
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    18. Clougherty, Joseph A. & Zhang, Nan, 2023. "Antitrust policy and inward FDI: The impact of policy risk and uncertainty on U.S. inward-FDI flows," International Business Review, Elsevier, vol. 32(4).

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