Theories of the multinational firm
‘That is fine in practice, but how does it work in theory?’ That quote is often attributed dismissively to an unnamed economist or to a French civic servant,1but it is a comment that should be taken seriously in international business, and Mats Forsgren’s book does exactly that. This is the third edition of this precisely organised, pithy book. Its 172 pages cover ‘six perspectives on multinationals’ (p. viii). These are: the Dominating, Coordinating, Knowing, Designing, Networking and Politicising multinational. Each receives a chapter. The six perspectives are then compared in ‘the multidimensional multinational’, while an epilogue covers new material for this third edition – the Governing multinational. This arrangement allows discussion of the key theoretical perspectives: the industrial economics/monopolistic competition approach, internalisation theory and transaction cost economics, the resource-based view (all largely drawn from economics), organisation theory, contingency...
- Kano, L. & Verbeke, A. forthcoming. Theories of the multinational firm: A micro-foundational perspective. Global Strategy Journal. Google Scholar