Sarianna M. Lundan

The geographical sources of competitiveness of multinational enterprises: an econometric analysis

This paper presents empirical evidence to assess the extent to which multinational corporations are deriving an increasing share of their competitive advantages from abroad. The evidence is analyzed in the context of the Porter diamond, incorporating both firm, industry and national level variables. A particularly interesting aspect of the results is the extent to which multinationals are increasingly sourcing abroad assets which are knowledge-intensive and appear similar, rather than complementary to their existing activities.

Alliances, Acquisitions and Multinational Advantage

This paper reviews recent empirical evidence to assess the implications of alliance formation and increasing merger and acquisition activity of multinationals in the context of the eclectic paradigm. Specifically, the paper will concentrate on the performance implications of international expansion via alliances and mergers, and their relationship to the so-called asset-augmenting foreign direct investment. It has been argued in the literature that the way in which multinationals are able to build on their existing advantages and to add to them by virtue of their international activities confers specific benefits to multinationality. We argue that the growth of cross-border acquisitions and alliances as modalities for international expansion has resulted from the continuing convergence of value-adding capabilities within the Triad, and while such activity can help to augment the asset base of the investing firms, it also has potentially anti-competitive implications.

What are Ownership Advantages

In this paper we examine three distinct types of ownership advantages, and argue that these are associated with three different kinds of limits to the growth of the firm. For some firms, the inability to regenerate its asset‐based advantages is critical, while for others, the inability to effectively coordinate its assets (inside or outside the firm), or the inability to negotiate the nonmarket environment are more salient. We think that the identification of different analytical categories of ownership advantages enables the construction of better proxies in empirical research, and helps to explain the limited geographical reach of MNEs observed in the literature.

The 'Commonwealth Effect' and the Process of Internationalisation

T HIS paper reports the results of a research project, the purpose of which was to assemble the first comprehensive data set on trade and investment relationships within the Commonwealth, and to provide an initial analysis to assess the significance of a ‘Commonwealth effect’ in trade and investment. The empirical results confirmed an overall tendency for high levels of intra-Commonwealth trade and investment, which was not solely explainable by other factors, such as regional trade agreements or geographical proximity. In particular, the ‘discovery’ of a de facto business network is of theoretical interest, as there has been a fair amount of discussion recently concerning the ‘stickiness’ of wealth producing assets, and the competitive advantages arising from the combination of such assets with mobile capital and the ownership-specific advantages of multinational enterprises. Following the decision taken by the Commonwealth in October 1997 to capitalise on its existing network of relationships to foster trade and investment creation, it is pertinent to examine which particular institutional features would account for the observed ‘lumping’ of economic activity within the Commonwealth, whether there is a learning and familiarity effect, and what the relative magnitude of such factors is in comparison to other effects. Towards this purpose, this paper will apply the Swedish internationalisation model of Johanson and

The new eclectic paradigm and international business strategy

The Handbook provides an impressive state-of-the-art overview of the international strategic management field as an area of scholarly inquiry. The great strength of the work is the thoughtfulness of the messages conveyed by the expert team of authors.

Japanese multinationals and the stability of the GATT system

The Kreinin hypothesis argues that the viability of an open, GATT-oriented global trading system could be threatened by the failure of Japan, a major player, to open its domestic markets and to source intermediate goods from foreign firms on a nondiscriminatory basis. Newly available data on intrafirm trade by Japanese multinationals suggest that the tendency to trade heavily with (Japanese) supplier firms with established relationships is not a conspiracy to promote a trade surplus, but rather an outcome of standard Japanese practices that closely resemble hierarchical vertical integration. But a breakdown of the GATT system is still a very real possibility because the Japanese chronic current-account surplus contributes to even further gains in the international competitiveness of major Japanese industries, and this may prove intolerable to the other major players.

Multinationals, Environment and Global Competition: A conceptual Framework

This chapter presents a conceptual framework to understand the role of multinational enterprises in the process of environmental standard setting in the global economy. Inside the multinational, we discuss the impact of path-dependency and irreversibility on environmental investment, and the importance of the integrated network structure of the multinational in enabling the transfer of standards within the firm. Outside the firm, we discuss the impact of regulation and market forces, and particularly the role of NGOs, in triggering change in firm behavior both at home and abroad. We conclude by considering the impact of supranational institutions on the environmental behavior of multinationals.

MULTINATIONALS, NGOs AND REGULATION: GREENPEACE AND THE GLOBAL PHASE-OUT OF CHLORINE BLEACHING

Empirical evidence from the past decade confirms that multinationals increasingly see the environment as a strategic issue, whether in terms of limiting damage to the bottom line from adverse publicity, or actually gaining in the marketplace by pioneering more environmentally conscious solutions. During the same period, NGOs have become a visible part of the political process, in influencing the environmental strategies of multinationals through direct action, as well as by forming broader coalitions aimed at influencing the agenda at multilateral institutions such as the WTO and the OECD regarding environmental concerns and the behavior of multinationals. This chapter explores the importance of different environmental drivers on the behavior of firms in the pulp and paper industry, with particular focus on the role of Greenpeace in changing industry practices. We discuss the extent to which the paper industry might be a special case in this respect, and conclude by assessing the implications for public policy.

Foreign direct investment in japan and the united states: A comparative analysis

In 1970, the stock of foreign direct investment (FDI) in the U.S. (

Human Rights Due Diligence in Global Value Chains

65.5 bn) was considerably less than that in Japan in 1990 (