An organismic approach to multinational enterprise failure
ISSN: 0025-1747
Article publication date: 16 December 2019
Issue publication date: 9 January 2021
Abstract
Purpose
The purpose of this paper is to answer why some multinational enterprises (MNEs) fail within the international business (IB) domain.
Design/methodology/approach
Conceptually, the study takes an organismic approach to MNE failure. Methodologically, it adopts an elite interview approach derived from the Delphi technique. Respondents are 39 IB and strategic management academics.
Findings
The paper finds that MNE failure is rooted in strategic leadership and capabilities (i.e. internal deterioration of organizational resources and strategies) and institutional pressures and differences, and these factors lead to deterioration of institutional legitimacy for an MNE.
Originality/value
The paper conducts a review of the firm failure and foreign divestment literature and undertakes an organismic approach to the analysis of MNE failure in the IB context. The paper provides useful insights on developing and implementing both market and non-market strategies for overcoming MNE internationalization failure.
Keywords
Acknowledgements
This work was supported by Hankuk University of Foreign Studies Research Fund.
Citation
Park, J.-Y., Lew, Y.K. and Park, B.I. (2021), "An organismic approach to multinational enterprise failure", Management Decision, Vol. 59 No. 1, pp. 18-31. https://doi.org/10.1108/MD-02-2019-0226
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited