Governance of Foreign Affiliates as a Distinctive Choice between Networks, Market, and Hierarchy
The Future of Foreign Direct Investment and the Multinational Enterprise
ISBN: 978-0-85724-555-7, eISBN: 978-0-85724-556-4
Publication date: 3 May 2011
Abstract
I argue that distinctive attributes of foreign affiliates, arising from their foreignness and multinationality, affect their choices between networks, market, and hierarchy as alternative modes of governance. Comparative analyses of 193 foreign and local professional services firms in London confirm these theoretical expectations. Market relationships are the preferred mode of foreign affiliates, challenging the view of the MNEs hierarchy as a major source of resources of affiliates. I outline direction for future research that follows from this study, including further inquiry into the distinctiveness of the MNE and the study of international activities of professional services firms.
Keywords
Citation
Nachum, L. (2011), "Governance of Foreign Affiliates as a Distinctive Choice between Networks, Market, and Hierarchy", Ramamurti, R. and Hashai, N. (Ed.) The Future of Foreign Direct Investment and the Multinational Enterprise (Research in Global Strategic Management, Vol. 15), Emerald Group Publishing Limited, Leeds, pp. 315-334. https://doi.org/10.1108/S1064-4857(2011)0000015018
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited