The MNE as a Portfolio: Interdependencies in MNE Growth Trajectory
City University of New York (CUNY) - Department of Marketing and International Business
Ewha Womans University
Journal of International Business Studies, Vol. 42, Issue 3, pp. 381-405, 2011
We conceptualize the MNE as a portfolio of interdependent sub-units, and examine its growth trajectory in relation to its existing portfolio. The empirical testing is based on a unique dataset that details all the location moves of US legal services MNEs during 1949–2006. These MNEs evolve in directions that follow from their past. Their portfolios affect their subsequent moves, speaking for the impact of interdependencies among sub-units on the evolution of MNEs. The portfolio exercises stronger impact on entry than on exit, suggesting that different forces affect MNEs’ expansion and contraction. We outline strategic and organizational implications of the conceptualization of the MNE as a portfolio.
Number of Pages in PDF File: 25Accepted Paper Series
Date posted: April 13, 2011
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