Few nations have internationalized their business operations as successfully as the Swedes. This book, first published in 1989, looks at the process in detail, examining the international operations of Swedish firms since 1970, including acquisitions of foreign firms. The international dimension of business is becoming increasingly important for firms of all sizes, and this analysis of what happens when companies enter and then sustain a presence in the international arena will be of great value to students and teachers of international business and management.
This monograph is based on an extensive dataset and a very well documented case study. Such a wealth of empirical material provides an ideal ground to test theories and enables the authors to elaborate interesting conceptualisations of some specific aspects of the broader network approach, particularly concerning the internationalisation of business networks. Anna Spadavecchia, Business History Combined with recent advances in network analysis [the book] can be instrumental in advancing our understanding, which will not only be useful for research scholars, but also provide practical guidance for managers. . . It is full of ideas which seem like deceptively simple black stones that in the hands of a skillful artisan can be turned into dazzling diamonds. Charles Dhanaraj, Journal of International Business Studies The work by Forsgren et al. offers a major contribution in terms of the analytical power of network relationships. By shifting to an exchange based perspective, they challenge the classical view of organizational power and control, but also the sources of organizational capabilities. They argue that the distinct capabilities and resources of the organization are developed through relationships and connections. Wilhelm Barner-Rasmussen, Rebecca Piekkari, Joanna Scott-Kennel and Catherine Welch, Academy of Management Perspectives An interesting and insightful book. It questions a lot of traditional thinking about international firms and the way they operate. Throughout the book, the reader is invited to develop a different perspective. This perspective might be called a relationships and networks theory of the firm. While this may sound familiar, the book goes well beyond anything I have seen in the existing literature, in terms of conceptualizing relationships and networks and in using this perspective to guide and interpret case study and survey research results. William G. Egelhoff, Fordham University, US It is now well accepted in the academic literature that the multinational corporation can be usefully modelled as a network of relationships. But it is less well-known that the origins of this perspective can be traced back to work done in Uppsala, Sweden, in the 1970s and 1980s. The term business network was first used there, and many important ideas around power and influence have also emerged from this research centre. In this new book, three of the key members of the Uppsala school develop a synthesis of the more recent ideas to come out of their research on networks. By focusing on the concept of the embedded multinational they show how the internal networks of the multinational interact with the web of external networks each subsidiary unit has in its local market. This book provides a definitive and compelling point of view of the importance of networking thinking to the study of the multinational corporation. It is an important book, and it will be widely cited in years to come. Julian Birkinshaw, London Business School, UK Forsgren, Holm, and Johanson have been among the leaders in developing the idea of the multinational firm as a network that spans different country environments. This perspective cautions the easy prescription that a multinational firm can do everything easily, if it just has the right organizational form. Relationships matter, as do the legitimacy of the firm in the context of its foreign investments. This book provides rich case insights into these dimensions. Bruce Kogut, INSEAD, France This book expands the business network view on managerial issues in multinational corporations. Specifically, it scrutinises the importance of a subsidiary s external and internal business network for its strategic and organizational role within the corporation. The internationalisation of firms in terms of management issues and headquarters control, the influence of subsidiaries on decisions and learning processes within multinational corporations are examined in detail. It is argued that
Used internationally at undergraduate and postgraduate level, this highly successful textbook presents, analyses and compares six different theories of the multinational firm that have dominated the research in international business during the last four decades.
This book is all about understanding multinational companies (MNCs) why they exist, how they compete, and their impact on society. Six important theoretical perspectives of the MNC are discussed at length and compared. The book can be read and understood at multiple levels, from learning what each theory is about to appreciating the more subtle implications of their differences for firms and society. Despite the complexity of the subject, the book is an easy and enjoyable read. It is written in a lively, user-friendly style, with many illustrated examples. William G. Egelhoff, Fordham University, US In most accounts, especially in the journal literature, the theory of international business is seen as evolving steadily through the incremental addition of a series of largely complementary analytical building blocks. Mats Forsgren sees instead a set of conflicting perspectives on the subject. In this valuable contribution he breaks down theoretical complexity in this field into its distinctive parts. He thereby gives us a better understanding of how these parts relate to one another or don t. John Cantwell, Rutgers University, US This excellent book deals with six theoretical approaches to the multinational firm, its activities and organization. The theories and their implications are explained and contrasted with each other. The clear and concise treatment of theories makes the work very useful for students, while its critical and comparative analysis can be a source of ideas for further developments by researchers. I highly recommend the book for students, teachers and researchers. Grazia Ietto-Gillies, London South Bank University, UK This timely textbook presents the assumptions and theories behind contemporary views on the multinational firm as an organization and as an actor in the global economy. Mats Forsgren analyzes and compares six different theories of the multinational firm from the dominating multinational to the politicizing multinational that have dominated the research in international business during the last four decades. Mats Forsgren reveals the basic building blocks and assumptions behind each theory in order to reach a better understanding of why the multinational firm is looked upon in so many different ways by researchers and stakeholders. This important textbook will be an invaluable resource for both undergraduate and postgraduate students on international business, international management and international economy courses.
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