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Forsgren, Mats
Publications (10 of 115) Show all publications
Forsgren, M. & Yamin, M. (2023). The MNE as the "crown of creation"?: a commentary on mainstream theories of multinational enterprises. Critical Perspectives on International Business, 19(4), 489-510
Open this publication in new window or tab >>The MNE as the "crown of creation"?: a commentary on mainstream theories of multinational enterprises
2023 (English)In: Critical Perspectives on International Business, ISSN 1742-2043, E-ISSN 1758-6062, Vol. 19, no 4, p. 489-510Article in journal (Refereed) Published
Abstract [en]

Purpose: The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible explanations for why MNE superiority seems to be dominant in the international business (IB) research field.

Design/methodology/approach: A common theme in mainstream IB theories is that multinational enterprises (MNEs) are superior in terms of cost efficiency and innovativeness compared with other types of organizations. A closer look at transaction cost economics (TCE)/internalization theory, evolutionary theory and dynamic capability theory reveal a bias toward MNE supremacy because of how MNEs are conceptualized as firms and therefore fail to explain the essence of "multinational advantage ". These revelations and the strong dependence on the benevolence to provide unbiased data means that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.

Findings: Although mainstream theories differ when it comes to the building blocks that constitute MNE supremacy, they have one attribute in common: they are silent as to why MNEs are superior compared with, for example, domestic firms or other types of economic agents. Irrespective of whether the focus is the strength of the hierarchy, the skill of managers or a common identity, nothing in the theories tells us that these factors are more pronounced in MNEs than in other types of economic actors.

Originality/value: The paper deals with the issue of multinational advantage. It claims that mainstream theories of MNEs tend to assume, explicitly or implicitly, that MNEs are superior in terms of cost efficiency and innovativeness compared with other types of economic agents. The analysis demonstrates that this tendency is a consequence of how MNEs are conceptualized as firms in the different theories as well as of the strong dependence in IB research on the benevolence of MNEs to provide unbiased data. It is concluded that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2023
Keywords
Dynamic capabilities, Internalization theory, Evolutionary theory, MNE advantage
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-511389 (URN)10.1108/cpoib-05-2022-0048 (DOI)000898803900001 ()
Available from: 2023-09-22 Created: 2023-09-22 Last updated: 2023-09-22Bibliographically approved
Forsgren, M. & Yamin, M. (2023). The source of MNE superiority from within or from outside?: - A response to "the importance of being transnational". Critical Perspectives on International Business, 19(4), 523-525
Open this publication in new window or tab >>The source of MNE superiority from within or from outside?: - A response to "the importance of being transnational"
2023 (English)In: Critical Perspectives on International Business, ISSN 1742-2043, E-ISSN 1758-6062, Vol. 19, no 4, p. 523-525Article in journal (Refereed) Published
Abstract [en]

Purpose The purpose of this paper is to respond to the comments by professor Ietto-Gillies on the paper on "The MNE as the Crown of Creation?"

Design/methodology/approach The authors argue that the key points made in the commentary are broadly complementary to the arguments set out in the "Crown of Creation?"

Findings The authors agree with the commentary that sources of advantages of multinationality lie "outside the MNE" - through its interactions with national governments and organised labour. However, the authors would caution that the achievement of such advantages may encounter constraints.

Research limitations/implications The original paper ("The MNE as the Crown of Creation?") was a critique of mainstream theories of the MNE regarding the assumed superiority of the MNE. The response to the paper makes the argument that any superiority associated with MNE must be sought in its interactions with other actors.

Practical implications The argument suggests that MNE managers seeking to exploit the advantage of multinationality through production shifting must be aware of the system-wide consequences of such actions.

Social implications Given the conceptual nature of the argument and the level of abstraction, solid social implications can only be drawn tentatively.Originality/value - The key novelty in the response paper is the possible negative effect - for MNEs - of unconstrained exercise of production shifting.

Originality/value The key novelty in the response paper is the possible negative effect – for MNEs – of unconstrained exercise of production shifting.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2023
Keywords
Multinational enterprises, Advantage of multinationality, MNE superiority
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-511395 (URN)10.1108/cpoib-03-2023-0019 (DOI)000995765500001 ()
Available from: 2023-09-15 Created: 2023-09-15 Last updated: 2023-09-15Bibliographically approved
Forsgren, M. & Holm, U. (2022). Controlling without owning – owning without controlling: A critical note on two extensions of internalization theory. Journal of International Business Studies, 53(8), 1734-1746
Open this publication in new window or tab >>Controlling without owning – owning without controlling: A critical note on two extensions of internalization theory
2022 (English)In: Journal of International Business Studies, ISSN 0047-2506, E-ISSN 1478-6990, Vol. 53, no 8, p. 1734-1746Article in journal (Refereed) Published
Abstract [en]

Recent attempts to extend internalization theory into new fields of enquiry illustrate the crucial role of control in the theory. In this paper, we focus on two examples: one applying internalization theory to external business relationships of multinational enterprises (MNEs) and one applying new internalization theory to MNEs' governance. We argue that, in both cases, the ability of the extended theory to explain MNE behavior can be questioned, either because of the governance of the external relationships is shared between the MNE and its counterparts (as in the first case), or because of the substantial increase in the level of complexity of the MNE's decision-making system (as in the second case). We conclude that scholars applying internalization theory to MNEs' external business relationships, and to their decision-making processes, should address what shared governance in external business relationships, and the issue of bounded rationality/bounded reliability, actually mean for the possibility to apply the usual economic logic behind internalization theory. It is essential that future research focuses on what impact the circumscribed control in the two cases has on the ability of MNEs to assess, both ex ante and ex post, the level of transaction costs and managerial costs as bases for its decisions to invest abroad and run foreign operations.

Place, publisher, year, edition, pages
Springer NatureSpringer Nature, 2022
National Category
Economics and Business
Identifiers
urn:nbn:se:uu:diva-458494 (URN)10.1057/s41267-021-00416-3 (DOI)000634612700001 ()
Available from: 2021-11-11 Created: 2021-11-11 Last updated: 2024-01-15Bibliographically approved
Forsgren, M. & Holm, U. (2021). Complementing the Uppsala model?: A commentary on Trevino and Doh's paper "Internationalization of the firm: A discourse-based view". Journal of International Business Studies, 52(7), 1407-1416
Open this publication in new window or tab >>Complementing the Uppsala model?: A commentary on Trevino and Doh's paper "Internationalization of the firm: A discourse-based view"
2021 (English)In: Journal of International Business Studies, ISSN 0047-2506, E-ISSN 1478-6990, Vol. 52, no 7, p. 1407-1416Article in journal, Editorial material (Other academic) Published
Abstract [en]

Since the Uppsala process model was launched 1977, we have seen an extensive amount of research on the internationalization of firms, with the model as a point of departure. Here, we analyze an interesting article published in JIBS by Trevino and Doh, who apply a discourse-based view on the internationalization of the firm. We place their work in the context of the research conducted after the Uppsala model was developed with special reference to the generalizing and singularizing purposes of some typical contributions. We raise issues concerning to what extent the Trevino-Doh article is actually modeling firms' internationalization process, how a discourse-based approach differs from other studies on a firm's strategic behavior, and if the cases used by the authors actually contribute to our understanding of the discourse-based methodology.

Place, publisher, year, edition, pages
Palgrave MacmillanPALGRAVE MACMILLAN LTD, 2021
Keywords
internationalization process, Uppsala model, discourse-based analysis
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-454636 (URN)10.1057/s41267-021-00411-8 (DOI)000629188400001 ()
Available from: 2021-09-29 Created: 2021-09-29 Last updated: 2024-01-15Bibliographically approved
Sinkovics, R. R., Forsgren, M., Sinkovics, N. & Holmström Lind, C. (2020). Social value creation in international business: introduction to the special issue. Critical Perspectives on International Business, 16(1), 1-6
Open this publication in new window or tab >>Social value creation in international business: introduction to the special issue
2020 (English)In: Critical Perspectives on International Business, ISSN 1742-2043, E-ISSN 1758-6062, Vol. 16, no 1, p. 1-6Article in journal, Editorial material (Other academic) Published
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-407680 (URN)10.1108/cpoib-03-2020-104 (DOI)000515383900001 ()
Available from: 2020-04-02 Created: 2020-04-02 Last updated: 2020-04-02Bibliographically approved
Andersson, U., Forsgren, M. & Holm, U. (2020). Subsidiaries as sources for learning in multinational enterprises: a commentary on the importance of external embeddedness. In: Mellahi, K., Meyer, K., Surdu, I. & Verbeke, A. (Ed.), The Oxford Handbook of International Business: . Oxford University Press
Open this publication in new window or tab >>Subsidiaries as sources for learning in multinational enterprises: a commentary on the importance of external embeddedness
2020 (English)In: The Oxford Handbook of International Business / [ed] Mellahi, K., Meyer, K., Surdu, I. & Verbeke, A., Oxford University Press, 2020Chapter in book (Refereed)
Place, publisher, year, edition, pages
Oxford University Press, 2020
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-406299 (URN)
Available from: 2020-03-06 Created: 2020-03-06 Last updated: 2020-08-26
Holmström Lind, C., Kang, O., Ljung, A. & Forsgren, M. (2018). MNC involvement in social innovations: the issue of knowledge, networks and power. Critical Perspectives on International Business, 16(1), 79-99
Open this publication in new window or tab >>MNC involvement in social innovations: the issue of knowledge, networks and power
2018 (English)In: Critical Perspectives on International Business, ISSN 1742-2043, E-ISSN 1758-6062, Vol. 16, no 1, p. 79-99Article in journal (Refereed) Published
Abstract [en]

Purpose

This paper aims to develop a conceptual framework and presents a number of propositions relating to why and how multinational companies (MNCs) engage in social innovations. The central focus is on the role of MNC knowledge, networks and power for their involvement in social innovations.

Design/methodology/approach

The authors combine literature on social innovations, business innovations and MNC literature, and present a number of propositions dealing with the link between MNC knowledge, networks and power-relations and their potential involvement in social innovations.

Findings

The authors emphasize that when social innovations are embraced by MNCs, the way that these corporations use their knowledge, networks and existing power-relations needs to be adapted to the new conditions present in the social innovation arena.

Research limitations/implications

The main limitation of this work is that the propositions are based on anecdotal evidence and that they are restricted to literature revolving around a few theoretical concepts (knowledge, networks, power). Against this, the authors suggest that to address the call for more empirical work on MNCs engagement in social innovation, these concepts could be used as a starting point in future empirical investigations.

Originality/value

The paper brings together and outlines a theoretical framework based on three theoretical approaches to the MNC as suggested by the literature: the knowledge-based MNC, differentiated MNC and political MNC. Based on these three perspectives, the key contribution of this paper is to develop a broader understanding of why and how MNCs engage in social innovation and the potential underlying liabilities for this involvement.

Place, publisher, year, edition, pages
Emerald, 2018
Keywords
Multinational companies, Social innovation, Knowledge, Network, Power, Business and society
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-424179 (URN)10.1108/cpoib-09-2017-0060 (DOI)000515383700001 ()
Available from: 2020-11-04 Created: 2020-11-04 Last updated: 2020-11-04Bibliographically approved
Forsgren, M. (2018). The development of international business: A narrative of theory and practice [Review]. Journal of International Business Studies, 49(6), 774-777
Open this publication in new window or tab >>The development of international business: A narrative of theory and practice
2018 (English)In: Journal of International Business Studies, ISSN 0047-2506, E-ISSN 1478-6990, Vol. 49, no 6, p. 774-777Article, book review (Other academic) Published
National Category
Business Administration
Identifiers
urn:nbn:se:uu:diva-373343 (URN)10.1057/s41267-018-0168-2 (DOI)000450446300008 ()
Available from: 2019-01-15 Created: 2019-01-15 Last updated: 2019-01-15Bibliographically approved
Ciabuschi, F., Forsgren, M. & Martín Martín, O. (2017). Value Creation at the Subsidiary Level: Testing the MNC Headquarters Parenting Advantage Logic. Long range planning, 50(1), 48-62
Open this publication in new window or tab >>Value Creation at the Subsidiary Level: Testing the MNC Headquarters Parenting Advantage Logic
2017 (English)In: Long range planning, ISSN 0024-6301, E-ISSN 1873-1872, Vol. 50, no 1, p. 48-62Article in journal (Refereed) Published
Abstract [en]

The purpose of this study is to test the assumptions of the headquarters parenting advantage in multinational firms within the context of subsidiary innovation processes. Specifically, we explore the relationship between the selective involvement of headquarters in both innovation development and transfer processes and their related performance in a data set of 85 innovation projects analysed with structural equation modelling. The findings provide only limited support to the parenting advantage logic as they show that although the headquarters are able to select subsidiary-level strategic innovation processes, their involvement is hampering the performance of these processes. Consequently, we offer new extensions to the reasoning behind the parenting advantage logic by introducing four complementary theoretical explanations for the potentially harmful effects of headquarters' involvement in subsidiary innovation-related activities.

National Category
Economics and Business
Identifiers
urn:nbn:se:uu:diva-301652 (URN)10.1016/j.lrp.2016.03.004 (DOI)000397693000014 ()
Available from: 2016-08-24 Created: 2016-08-24 Last updated: 2019-09-20Bibliographically approved
Forsgren, M. (2016). A note on the revisited Uppsala internationalization process model: Implications of business Networks and entrepreneurship. Journal of International Business Studies
Open this publication in new window or tab >>A note on the revisited Uppsala internationalization process model: Implications of business Networks and entrepreneurship
2016 (English)In: Journal of International Business Studies, ISSN 0047-2506, E-ISSN 1478-6990Article in journal (Refereed) Published
Place, publisher, year, edition, pages
Palgrave: , 2016
National Category
Social Sciences
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-301643 (URN)
Available from: 2016-08-23 Created: 2016-08-23 Last updated: 2018-05-28
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