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Hymer's analysis of the multinational organization: Power retention and the demise of the federative MNE

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  • Yamin, Mohammad
  • Forsgren, Mats

Abstract

This paper links Hymer's later contributions to an important aspect of the literature on the management of the MNE- namely- that on the federative MNE. The key point from this literature is that embeddedness in host country networks is potentially a source of strategic power for subsidiaries and thus a serious challenge to the MNE headquarters' monopoly over strategy. Hymer's analysis, due to the stress that it puts on power, suggests that rather than 'putting up' with power dilution, MNEs will seek to reduce the federative nature of multinationality. In this paper we have concentrated on explaining the preponderance of Regional MNEs as an illustration of Hymer's power retention thesis.

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  • Yamin, Mohammad & Forsgren, Mats, 2006. "Hymer's analysis of the multinational organization: Power retention and the demise of the federative MNE," International Business Review, Elsevier, vol. 15(2), pages 166-179, April.
    • Handle: RePEc:eee:iburev:v:15:y:2006:i:2:p:166-179
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    Cited by:

    1. Williams, Christopher & Lee, Soo Hee, 2009. "International management, political arena and dispersed entrepreneurship in the MNC," Journal of World Business, Elsevier, vol. 44(3), pages 287-299, July.
    2. Scott-Kennel, Joanna & Giroud, Axele, 2015. "MNEs and FSAs: Network knowledge, strategic orientation and performance," Journal of World Business, Elsevier, vol. 50(1), pages 94-107.
    3. Mohammad Yamin, 2011. "A Commentary on Peter Buckley’s Writings on the Global Factory," Management International Review, Springer, vol. 51(2), pages 285-293, April.
    4. 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.
    5. Rabbiosi, Larissa, 2011. "Subsidiary roles and reverse knowledge transfer: An investigation of the effects of coordination mechanisms," Journal of International Management, Elsevier, vol. 17(2), pages 97-113, June.
    6. Christos N. Pitelis & David J. Teece, 2018. "The New MNE: ‘Orchestration’ Theory as Envelope of ‘Internalisation’ Theory," Management International Review, Springer, vol. 58(4), pages 523-539, August.
    7. Klopf, Patricia & Nell, Phillip C., 2018. "How “space” and “place” influence subsidiary host country political embeddedness," International Business Review, Elsevier, vol. 27(1), pages 186-197.
    8. Rugman, Alan M. & Oh, Chang Hoon, 2010. "Does the regional nature of multinationals affect the multinationality and performance relationship?," International Business Review, Elsevier, vol. 19(5), pages 479-488, October.
    9. Slavich, Barbara & Cappetta, Rossella & Giangreco, Antonio, 2014. "Exploring the link between human resource practices and turnover in multi-brand companies: The role of brand units’ images," European Management Journal, Elsevier, vol. 32(2), pages 177-189.
    10. Azar, Goudarz, 2012. "Inpatriates and Expatriates: Sources of Strategic Human Capital for Multinational Food and Beverage Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(A), pages 1-7, June.
    11. Ciabuschi, Francesco & Dellestrand, Henrik & Kappen, Philip, 2012. "The good, the bad, and the ugly: Technology transfer competence, rent-seeking, and bargaining power," Journal of World Business, Elsevier, vol. 47(4), pages 664-674.
    12. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    13. Azmeh, Shamel & Nadvi, Khalid, 2014. "Asian firms and the restructuring of global value chains," International Business Review, Elsevier, vol. 23(4), pages 708-717.
    14. Rudolf R. Sinkovics & Anthony S. Roath & S. Tamer Cavusgil, 2011. "International Integration and Coordination in MNEs," Management International Review, Springer, vol. 51(2), pages 121-127, April.
    15. Nell, Phillip C. & Ambos, Bjérn & Schlegelmilch, Bodo B., 2011. "The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks," Journal of World Business, Elsevier, vol. 46(4), pages 497-505, October.
    16. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.
    17. Constantina Kottaridi & Marina Papanastassiou & Christos Pitelis, 2007. "Determinants of MNE subsidiaries decision to set uo own R&D laboratories: Theory and Evidence," Working Papers 007, University of Peloponnese, Department of Economics.
    18. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    19. de Jong, Gjalt & Phan, T. Binh & van Ees, Hans, 2011. "Does the meta-environment determine firm performance? Theory and evidence from European multinational enterprises," International Business Review, Elsevier, vol. 20(4), pages 454-465, August.
    20. Oh, Chang Hoon & Rugman, Alan M., 2012. "Regional integration and the international strategies of large European firms," International Business Review, Elsevier, vol. 21(3), pages 493-507.
    21. Mo Yamin & Hsin-Ju ‘Stephie’ Tsai & Ulf Holm, 2011. "The Performance Effects of Headquarters’ Involvement in Lateral Innovation Transfers in Multinational Corporations," Management International Review, Springer, vol. 51(2), pages 157-177, April.
    22. Liena Kano, 2018. "Global value chain governance: A relational perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 684-705, August.

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