MNC

• Multi centered organisations: Not only order taking
• Ressources and capabilities all over the organization
• Subs can take strategic roles (also own internationalization)
• Synergies between subs
• Biderectional flows instead of unidirectional flows (products, capital)
• Horizontal relations between subs
• Innovation is decentralized
• formal structures get complemented by informal coordinations
  • Innovation in any subsidiary
• The responsibility of specific foreign units extends the host country

• boarders inside and outside are clear
• different levels of corporate embeddedness (product flows, knowledge flows, coordination)

• Cooperation with other independent companies
• local network of the foreign subsidiaries
  • Market as networks: Network of relations
  • Not only market relations (universitites etc.)
  • different degree of external embededdedness (dependency on Role of subsidiary)

• Boarders in the network are blury, not easily defined
• Neo-institutionalism
  • Implies mutual behavior by organisations
• Contingency approach: Organizations choose between internal & external match achieving

• Horizontal linkages between subsidiaries
• Differentiated HQ-subsidiary relationships

• Age
• Size
• Success
• Value-added activities (Marketing, distribution, production)
• Motives for existence (market-, resource-seeking)
• Available resources
• External environment
• Degree of power relationships

• Firm is a black box
  • Produces only for outsiders
  • Input factors of production are transformed into an output of finished goods
  • uniform inputs into uniform outputs

Firms choose the level of vertical integration that minimizes the transaction cost