Hymer's analysis of the multinational organization: Power retention and the demise of the federative MNE

This paper links Hymer's later contributions to an important aspect of the literature on the management of the MNE- namely- that on the federative MNE. The key point from this literature is that embeddedness in host country networks is potentially a source of strategic power for subsidiaries an...

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Bibliographic Details
Published inInternational business review Vol. 15; no. 2; pp. 166 - 179
Main Authors Yamin, Mohammad, Forsgren, Mats
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.04.2006
Elsevier
SeriesInternational Business Review
Subjects
Business economics
Business studies
Firm theory
Hymer, Stephen Herbert
International market
Multinational enterprises
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Summary:This paper links Hymer's later contributions to an important aspect of the literature on the management of the MNE- namely- that on the federative MNE. The key point from this literature is that embeddedness in host country networks is potentially a source of strategic power for subsidiaries and thus a serious challenge to the MNE headquarters’ monopoly over strategy. Hymer's analysis, due to the stress that it puts on power, suggests that rather than ‘putting up’ with power dilution, MNEs will seek to reduce the federative nature of multinationality. In this paper we have concentrated on explaining the preponderance of Regional MNEs as an illustration of Hymer's power retention thesis.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0969-5931
1873-6149
DOI:10.1016/j.ibusrev.2005.07.006