Abstract
This paper builds on Birkinshaw’s model of multinational enterprise (MNE) as an internal market system
[Birkinshaw, J. (2000). Entrepreneurship in the global firm. London: Sage]. This model addresses the issues
related to the emergence of market-based mechanisms of coordination within the MNEs and the strategic
decisions that affect internal competition. Birkinshaw argues that subsidiaries simultaneously participate in
three different internal markets within an MNE:a market for intermediate goods and services, one for charters
and another for competencies and practices. The goal of the paper is to expand Birkinshaw’s concept of
internal market and analyze the logic behind internal competition by considering more fully existing
literature and developing an organizing framework to position such a model within that literature. There is
specific focus on discussing how the internal market model relates to modern network-based configurations
of the MNE. In addition, the study shows that factors affecting the extent to which each of the three internal
markets is established can be better understood if we link such a model to the contributions developed by three
mainstreams of research: internalization theory, resource-based view and organizational learning literature
Lingua originale | English |
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pagine (da-a) | 253-277 |
Numero di pagine | 25 |
Rivista | International Business Review |
DOI | |
Stato di pubblicazione | Pubblicato - 2006 |
Keywords
- hierarchy
- internal markets
- multinational enterprise
- networks
- subsidiaries