Knowledge flows and the modelling of the multinational enterprise

Nicole Adler and Niron Hashai
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Nicole Adler: Jerusalem School of Business Administration, The Hebrew University, Israel
Niron Hashai: Jerusalem School of Business Administration, The Hebrew University, Israel

Journal of International Business Studies, 2007, vol. 38, issue 4, 639-657

Abstract: This research develops a location–allocation, mixed integer linear model that simultaneously evaluates a substantial number of multinational enterprise (MNE) location and control configurations to yield an optimal network, considering R&D, production and marketing facilities, produced in-house and/or outsourced. The model places special emphasis on the role of intra-firm, inter-firm and extra-firm knowledge flows in addressing cost minimisation considerations of MNEs. A simulation analysis is undertaken to evaluate potential solutions from such a framework and to analyse their consistency with theoretical expectations. Journal of International Business Studies (2007) 38, 639–657. doi:10.1057/palgrave.jibs.8400284

Date: 2007
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