Transnationality in the XXI century. Concept and indicators
Critical Perspectives on International Business
ISSN: 1742-2043
Article publication date: 16 July 2021
Issue publication date: 7 April 2022
Abstract
Purpose
The purpose of this paper is to analyse the impact of major structural changes on the conceptualization of the transnational corporation (TNC) based on foreign direct investment (FDI) and on indicators of transnationality.
Design/methodology/approach
Analysis of three major structural changes which impact the current conception of transnationality. They are: the rise of digital companies; the increased role of finance in the economy; externalization of activities via non-equity modalities (NEMs) with an impact on FDI and on the labour market.
Findings
The paper finds that the current concept of transnationality needs widening to take account of companies with a low degree of fixed assets abroad such as the digital and the financial companies and those internationalizing via NEMs, as well as to take account of the evolving relationship between TNCs and labour.
Research limitations/implications
Future research along the lines proposed should consider: working explicitly with the new, inclusive concept of transnationality and arrive at an empirical estimate of the proposed indices of transnationality which modify and amplify the current United Nations Conference on Trade and Development indices.
Social implications
Useful for understanding the nature of transnationality in the twenty-first century and for developing policies.
Originality/value
The paper proposes a new concept of transnationality and of the TNC, one that allows for new ways of organizing direct business activities abroad. It also proposes broadening the list of indicators of transnationality.
Keywords
Acknowledgements
An early version of the paper was presented at the 2019 World Economics Association (WEA) Conference on “Going Digital: What is the Future of Business and Labour”? It was then developed into a WP for the Birkbeck Centre for Innovation Management Research (CIMR) series: “Digitalization and the Transnational Corporation”, Working Paper n. 45. Both occasions gave rise to welcome comments. Earlier drafts of the present version received useful comments from Richard Bolwijn, Bruno Casella, Claudia Trentini, Amelia Santos Paulino, Roger Strange and Antonello Zanfei. Two reviewers of this journal gave excellent comments on the first and second rounds of the reviewing process. It is clear to this author that the reviewers are not only experts in the field but have also been prepared to devote a very generous amount of time to the process.
Citation
Ietto-Gillies, G. (2022), "Transnationality in the XXI century. Concept and indicators", Critical Perspectives on International Business, Vol. 18 No. 3, pp. 338-361. https://doi.org/10.1108/cpoib-11-2020-0135
Publisher
:Emerald Publishing Limited
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