Foreignness, Multinationality, and Inter-Organizational Relationships

36 Pages Posted: 24 Jul 2008

See all articles by Lilac Nachum

Lilac Nachum

City University of New York - Allen G. Aaronson Department of Marketing & International Business

Date Written: July 23, 2008

Abstract

I examine how foreignness and multinationality affect the propensity of affiliates to form inter-organizational relationships, using local firms as benchmarks to identify the sources of the distinctiveness of foreign affiliates. The empirical testing is based on data on 554 advertising agencies in the US. The findings show that foreign affiliates form fewer inter-organizational relationships than local firms do. Interactions with the MNEs partly explain these differences, and suggest complex relationships between inter- and intra-organizational interactions. The differences between foreign and local firms arise primarily from varying organizational scope, whether single- or multi-unit organizations, while geographic scope is less influential.

Keywords: networking of foriegn affiliates, internal and external networks, MNE network, advertising agencies

Suggested Citation

Nachum, Lilac, Foreignness, Multinationality, and Inter-Organizational Relationships (July 23, 2008). Available at SSRN: https://ssrn.com/abstract=1172342 or http://dx.doi.org/10.2139/ssrn.1172342

Lilac Nachum (Contact Author)

City University of New York - Allen G. Aaronson Department of Marketing & International Business ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States

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