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Multinational corporations (MNCs) are experiencing a number of major challenges in the international business arena. Can business diplomacy help them to deal with these challenges effectively? In this introductory chapter we conceptualize and identify the relationship between MNCs’ international business diplomatic activities and firm performance.

We conducted a literature review and interviews with five large MNCs that are operating in distinctive industries. Business diplomatic activities have been classified into three particular areas to support the analysis, namely: (1) MNC–Non-Governmental Organization (NGO) relations, (2) MNC–Host Government relations, and (3) MNC–Local Community relations.

The main findings suggest that international business diplomacy has a direct positive effect on firm performance with regard to so-called soft or nonfinancial indicators. These indicators include knowledge sharing, reputation, company image, and marketing possibilities. The effect can in turn lead to a better financial performance and market stance in the long run.

The results of this study are important for the future awareness and execution of business diplomacy in large MNCs.

This chapter seeks to enhance organizational theory's current typology of organizational architectures to explain a flourishing modern architecture that has developed utilizing the inexpensive communication paths created by technology such as the Internet and wireless networks. As communication and coordination costs have dropped, new organizing methods have grown that are difficult to understand using the traditional organizational architectures. In this chapter, we introduce a new community architecture, the “C-form,” which is categorized by (1) fluid, informal peripheral boundaries of membership; (2) significant incorporation of voluntary labor; (3) information-based product output; and (4) significantly open sharing of knowledge. Although the domain of open source software (OSS) is frequently cited as an example of such communities, we argue that the form expands well beyond the domain of software to a wide variety of information-based products. Drawing on a culture frame, we develop an initial set of principles of C-forms and finally explore the implications of the C-form for the modern organizational world.