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Digitalized service multinationals and international business theory

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  • Jean-François Hennart

    (Tilburg University
    Vienna University of Economics and Business
    Politecnico di Milano)

Abstract

Banalieva and Dhanaraj argue that digital service multinationals (DSMNCs) possess a new category of firm-specific advantage (FSA), the network advantage, and that, contrary to extant theory, they use networks as a mode of governance. I review the business models used by DSMNCs, compare them to non-digital ones, and explore what we can learn about them from extant IB theory. I conclude that network advantages are not a new category of FSAs, that networks are not a mode of governance, and that their use by DSMNCs is well explained by extant theory.

Suggested Citation

  • Jean-François Hennart, 2019. "Digitalized service multinationals and international business theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1388-1400, October.
    • Handle: RePEc:pal:jintbs:v:50:y:2019:i:8:d:10.1057_s41267-019-00256-2
    DOI: 10.1057/s41267-019-00256-2
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    References listed on IDEAS

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