The Modern MNE as an Efficient Meta-integrator: Emerging Market MNEs Need to Foster Internal Embeddedness to Succeed

Rajneesh Narula

John H Dunning Centre for International Business Discussion Papers from Henley Business School, University of Reading

Abstract: The modern MNE has to be a 'meta-integrator', able to leverage knowledge within and between its different constituent affiliates, which requires efficient internal markets and well-structured cross-border hierarchies. EMNEs will need to strengthen the ownership advantages necessary to achieve such internal embeddedness, which are hard to acquire, and must be learnt. I couch this discussion in the ongoing debate about the nature of ownership advantages. The ability to be competitive in an era of globalization depends as much on the EMNE's technological assets as it does on its ability to achieve economies of common governance. The EMNE (like all MNEs) has to be able to promote internal knowledge flows, both to and from the parent, as well as between affiliates located in different countries, and the ability to achieve organizational, scale and scope economies.

Keywords: Multinationality; R&D; productivity (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-int
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