IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v40y2005i1p71-90.html
   My bibliography  Save this article

Toward coopetition within a multinational enterprise: a perspective from foreign subsidiaries

Author

Listed:
  • Luo, Yadong

Abstract

This article presents a conceptual and typological framework that delineates coopetition within a globally coordinated multinational enterprise--simultaneous cooperation and competition between geographically dispersed subunits. With heightened interdependence in resource or knowledge sharing, value-chain rationalization, and common function integration, foreign subsidiaries increasingly cooperate between themselves, bilaterally or multilaterally, in pursuit of synergistically collective gains while synchronically competing for parent resources, corporate support, system position, and market expansion. This article explains why coopetition occurs and in what areas they cooperate and compete, augments a typology that classifies subunits along the various levels of simultaneous cooperation and competition (aggressive demander, silent implementer, ardent contributor, and network captain), discusses respective determinants of cooperation and competition, and explicates the internal infrastructure needed to help maximize consolidated returns from coopetition.

Suggested Citation

  • Luo, Yadong, 2005. "Toward coopetition within a multinational enterprise: a perspective from foreign subsidiaries," Journal of World Business, Elsevier, vol. 40(1), pages 71-90, February.
    • Handle: RePEc:eee:worbus:v:40:y:2005:i:1:p:71-90
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951604000422
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Sumantra Ghoshal & Nitin Nohria, 1989. "Internal differentiation within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 10(4), pages 323-337, July.
    3. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    4. Kendall Roth & Allen J Morrison, 1992. "Implementing Global Strategy: Characteristics of Global Subsidiary Mandates," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 715-735, December.
    5. Charles W. L. Hill & Michael A. Hitt & Robert E. Hoskisson, 1992. "Cooperative Versus Competitive Structures in Related and Unrelated Diversified Firms," Organization Science, INFORMS, vol. 3(4), pages 501-521, November.
    6. Harbir Singh & Maurizio Zollo, 1998. "The Impact of Knowledge Codification, Experience Trajectories and Integration Strategies on the Performance of Corporate Acquisitions," Center for Financial Institutions Working Papers 98-24, Wharton School Center for Financial Institutions, University of Pennsylvania.
    7. Yves Doz & C K Prahalad, 1984. "Patterns of Strategic Control Within Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 55-72, June.
    8. B R Baliga & Alfred M Jaeger, 1984. "Multinational Corporations: Control Systems and Delegation Issues," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 25-40, June.
    9. Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(3), pages 489-514, September.
    10. Kendall Roth & David M Schweiger & Allen J Morrison, 1991. "Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 369-402, September.
    11. Granstrand, Ove & Hakanson, Lars & Sjolander, Soren, 1993. "Internationalization of R&D -- a survey of some recent research," Research Policy, Elsevier, vol. 22(5-6), pages 413-430, November.
    12. Stephen J. Kobrin, 1991. "An empirical analysis of the determinants of global integration," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 17-31, June.
    13. Julian M Birkinshaw & Allen J Morrison, 1995. "Configurations of Strategy and Structure in Subsidiaries of Multinational Structure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 729-753, December.
    14. Udo Zander & Bruce Kogut, 1995. "Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test," Organization Science, INFORMS, vol. 6(1), pages 76-92, February.
    15. Sumantra Ghoshal & Christopher A Bartlett, 1988. "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 365-388, September.
    16. Andrew C. Inkpen & Adva Dinur, 1998. "Knowledge Management Processes and International Joint Ventures," Organization Science, INFORMS, vol. 9(4), pages 454-468, August.
    17. Bruce Kogut & Udo Zander, 1996. "What Firms Do? Coordination, Identity, and Learning," Organization Science, INFORMS, vol. 7(5), pages 502-518, October.
    18. Y Luo, 2003. "Market-seeking MNEs in an emerging market: How parent–subsidiary links shape overseas success," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(3), pages 290-309, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José R. Torre & José Paulo Esperança & Jon I. Martínez, 2011. "Organizational Responses to Regional Integration Among MNEs in Latin America," Management International Review, Springer, vol. 51(2), pages 241-267, April.
    2. Luo, Yadong, 2002. "Organizational dynamics and global integration: A perspective from subsidiary managers," Journal of International Management, Elsevier, vol. 8(2), pages 189-215.
    3. Galli Geleilate, Jose-Mauricio & Andrews, Daniel S. & Fainshmidt, Stav, 2020. "Subsidiary autonomy and subsidiary performance: A meta-analysis," Journal of World Business, Elsevier, vol. 55(4).
    4. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    5. Tina C. Ambos & Julian Birkinshaw, 2010. "Headquarters’ Attention and Its Effect on Subsidiary Performance," Management International Review, Springer, vol. 50(4), pages 449-469, August.
    6. Marcus Matthias Keupp & Maximilian Palmié & Oliver Gassmann, 2011. "Achieving Subsidiary Integration in International Innovation by Managerial “Tools”," Management International Review, Springer, vol. 51(2), pages 213-239, April.
    7. Persson, Magnus, 2006. "The impact of operational structure, lateral integrative mechanisms and control mechanisms on intra-MNE knowledge transfer," International Business Review, Elsevier, vol. 15(5), pages 547-569, October.
    8. Michael J. Enright & Venkat Subramanian, 2007. "An organizing framework for MNC subsidiary typologies," Management International Review, Springer, vol. 47(6), pages 895-924, December.
    9. Fascia, Michael, 2019. "WORKING PAPER SERIES PROJECT_2019: Study of Knowledge transfer principals," OSF Preprints w2uhg, Center for Open Science.
    10. Andrews, Daniel S. & Fainshmidt, Stav & Newburry, William & Parente, Ronaldo & Haensel, Kira, 2023. "What determines subunit integration in the multinational firm? A meta-analysis," Journal of International Management, Elsevier, vol. 29(6).
    11. Andersen, Torben Juul & Foss, Nicolai Juul, 2005. "Strategic opportunity and economic performance in multinational enterprises: The role and effects of information and communication technology," Journal of International Management, Elsevier, vol. 11(2), pages 293-310, June.
    12. Zander, Ivo, 1998. "The evolution of technological capabilities in the multinational corporation--dispersion, duplication and potential advantages from multinationality," Research Policy, Elsevier, vol. 27(1), pages 17-35, May.
    13. Patrick Regnér & Udo Zander, 2011. "Knowledge and Strategy Creation in Multinational Companies," Management International Review, Springer, vol. 51(6), pages 821-850, December.
    14. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    15. Wenpin Tsai, 2002. "Social Structure of “Coopetition” Within a Multiunit Organization: Coordination, Competition, and Intraorganizational Knowledge Sharing," Organization Science, INFORMS, vol. 13(2), pages 179-190, April.
    16. Lunnan, Randi & Meyer, Klaus & Mudambi, Ram & Yang, Qin, 2023. "The impact of knowledge and financial resource flows for MNE strategy: A typology of subsidiary roles," International Business Review, Elsevier, vol. 32(6).
    17. Lin, Shao-Lung & Hsieh, An-Tien, 2010. "International strategy implementation: Roles of subsidiaries, operational capabilities, and procedural justice," Journal of Business Research, Elsevier, vol. 63(1), pages 52-59, January.
    18. Bo Bernhard Nielsen & Sabina Nielsen, 2009. "Learning and Innovation in International Strategic Alliances: An Empirical Test of the Role of Trust and Tacitness," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 1031-1056, September.
    19. Harzing, Anne-Wil & Noorderhaven, Niels, 2006. "Knowledge flows in MNCs: An empirical test and extension of Gupta and Govindarajan's typology of subsidiary roles," International Business Review, Elsevier, vol. 15(3), pages 195-214, June.
    20. Wolf, Joachim, 2002. "Strategic orientation and coordination of human resource management in multinational corporations: An information-processing and gestalt analysis," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 553, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:40:y:2005:i:1:p:71-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.