Knowledge-based resources as determinants of MNC structure: tests of an integrative model

Tailan Chi, Paul C. Nystrom and Philipp Kircher

Journal of International Management, 2004, vol. 10, issue 2, 219-238

Abstract: This paper develops and tests a theoretical model of the structural choice by multinational corporations (MNCs). The model draws on three research streams: the contingency framework, integration-responsiveness (IR) framework, and organizational economics. Insights from the three streams of work are integrated into a theory of optimal structural choice under the assumption that both the MNC and its managers make decisions on the basis of their self-interests. An important feature of the model is its exposition of knowledge-based resources as a key determinant of MNC structure. The predictions of the model are tested on a sample of 101 MNCs using a multivariate regression approach. The results confirm the role of knowledge-based resources in influencing MNC structures.

Keywords: Organizational; structure; Knowledge; intensity; Transaction; costs; Contingency; theory; Integration-responsiveness (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (5)

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