Digitalized service multinationals and international business theory

Jean-Francois Hennart

Journal of International Business Studies, 2019, vol. 50, issue 8, No 9, 1388-1400

Abstract: Abstract Banalieva and Dhanaraj argue that digital service multinationals (DSMNCs) possess a new category of firm-specific advantage (FSA), the network advantage, and that, contrary to extant theory, they use networks as a mode of governance. I review the business models used by DSMNCs, compare them to non-digital ones, and explore what we can learn about them from extant IB theory. I conclude that network advantages are not a new category of FSAs, that networks are not a mode of governance, and that their use by DSMNCs is well explained by extant theory.

Keywords: internalization theory; transaction cost theory; networks; services; digital platforms (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (32)

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DOI: 10.1057/s41267-019-00256-2

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