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Book part
Publication date: 4 March 2021

Frank Elter, Paul N. Gooderham and Inger G. Stensaker

A number of prominent European multinational mobile telephony companies (MNMTCs) have their origins in state-owned monopolies that successfully undertook radical…

Abstract

A number of prominent European multinational mobile telephony companies (MNMTCs) have their origins in state-owned monopolies that successfully undertook radical transformation in the late 1980s to late 1990s. Not only did they face liberalization of their domestic markets but they also moved from fixed-line telephony to mobile telephony prior to rapid expanded overseas. This study focuses on Telenor whose operations currently span the Nordic region and Southeast Asia. Like other MNMTCs, Telenor currently faces another period of radical change as global digital services providers are set to ride on the connectivity MNMTCs supply thereby reducing them to “dumb-pipes.” This study indicates that Telenor has abandoned radical transformation for “modernization” of its extant operations. For an understanding of why this second radical change is proving arduous for MNMTCs, the authors argue that there is a need to take into consideration institutional change.

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The Multiple Dimensions of Institutional Complexity in International Business Research
Type: Book
ISBN: 978-1-80043-245-1

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Book part
Publication date: 4 August 2017

Frank Elter and Svein Ulset

This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational…

Abstract

This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies expand into increasingly distant and dissimilar countries. According to this theory, multinational mobile network operators (MNOs) recover from over-diversified expansion by improving their local adaptation strategies by means of reconfiguring the value chain and entering local partnerships, by improving their global replication capabilities or by concentrating expansion to clusters of similar country markets. Three dynamic propositions are developed and exemplified concerning MNOs’ diversified international expansion. Implications for international diversification research finalize the chapter.

Book part
Publication date: 4 August 2017

Àngels Dasí, Frank Elter, Paul N. Gooderham and Torben Pedersen

In recent years, we can observe the emergence of firms, born both digital and global, that have disrupted existing industries. Deploying digital technologies, they have…

Abstract

In recent years, we can observe the emergence of firms, born both digital and global, that have disrupted existing industries. Deploying digital technologies, they have developed innovative value chains and business models that threaten established multinational companies (MNCs). In this chapter, we examine how MNCs can and do respond to the challenge digital technologies represent. We describe the main facets of digital technologies and discus the potential these have to undermine the value chains and business models of established MNCs. In order to illustrate this, we employ longitudinal data from Telenor, a leading multinational mobile telecom company. Telenor perceives digitalization as a critical threat that in turn is causing a radical rethink about the viability of its decentralized, locally responsive value chain and business model. Our data provides insights into business models in-the-making at the top management level. We argue that the case of Telenor is generalizable to multi-domestic MNCs across a range of industries.

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Breaking up the Global Value Chain
Type: Book
ISBN: 978-1-78743-071-6

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Book part
Publication date: 21 October 2019

Angels Dasi, Frank Elter, Paul Gooderham and Torben Pedersen

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos…

Abstract

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos are entering a period of VUCA. Although digitally based competitors could suffer from liabilities of “outsidership,” we argue that the physical presence of telcos in local markets will be insufficient to avoid a future as utilities or dumb-pipes. One significant issue as they confront VUCA is therefore whether telcos are able to develop and apply dynamic capabilities.

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International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

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Book part
Publication date: 10 August 2016

Paul N. Gooderham, Svein Ulset and Frank Elter

The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to…

Abstract

The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to “Bottom-of-the-Pyramid” (BOP) settings. Second, to address how they can apply elements of BOP business models across their operations. We use the case of the entry of the Norwegian mobile telecom MNC Telenor into India as the empirical context. Prior to India, Telenor had operated successfully in Asian emerging economies by adapting its business model to local conditions. However, it had only operated in the upper income tiers of these countries. In India, its late entry meant that for the first time in its history it had to move beyond these upper income tiers and develop a business model suited to BOP. We apply an economic model terminology as a means to gauging the degree of business model innovation Telenor undertook. Telenor succeeded in its development of a BOP business model by working in close partnership with local firms. Although Telenor in India was operating at BOP, a number of the resultant innovations were deemed by Telenor to be transferable to top-of-the-pyramid operations across Telenor. In order to succeed in developing BOP business models MNCs must go beyond local responsiveness and engage closely with local partners. However, transference of elements of BOP business models to other parts of the MNC is contingent on there being a centralized integrating capability.

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Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

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Book part
Publication date: 13 August 2014

Frank Elter, Paul N. Gooderham and Svein Ulset

This paper revisits Bartlett and Ghoshal’s transnational theory of the MNC in relation to multi-domestic MNCs. We argue that the aggregate level of analysis adopted by…

Abstract

This paper revisits Bartlett and Ghoshal’s transnational theory of the MNC in relation to multi-domestic MNCs. We argue that the aggregate level of analysis adopted by Bartlett and Ghoshal is unhelpful for identifying significant changes in multi-domestic MNCs at the level of discrete functions. We argue that a more disaggregated level of analysis is required. Our analysis of two cases of multi-domestic MNCs that have undertaken the global integration of their locally distributed purchasing functions indicates that while significant change to the purchasing function has occurred, at the aggregate level both MNCs remain multi-domestic. In both cases the decision to integrate local purchasing was regarded as having more obvious benefits than integrating other functions such as marketing. While both of our case multi-domestic MNCs may in future choose to integrate other functions and develop into full-fledged transnational companies we argue that there is no inevitability to this. Indeed global integration may cease with the purchasing function. A second theme in this paper is that we argue that Bartlett and Ghoshal’s transnational theory has a biased view of what constitutes effective governance mechanisms for achieving global integration, local responsiveness and worldwide learning and that it would greatly benefit from a more balanced application of hierarchical and relational governance mechanisms.

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Orchestration of the Global Network Organization
Type: Book
ISBN: 978-1-78350-953-9

Keywords

Content available
Book part
Publication date: 4 March 2021

Abstract

Details

The Multiple Dimensions of Institutional Complexity in International Business Research
Type: Book
ISBN: 978-1-80043-245-1

Content available
Book part
Publication date: 21 October 2019

Abstract

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Content available
Book part
Publication date: 10 August 2016

Abstract

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

Content available
Book part
Publication date: 13 August 2014

Abstract

Details

Orchestration of the Global Network Organization
Type: Book
ISBN: 978-1-78350-953-9

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