The Dynamic Capabilities of Meta-Multinationals

Abstract

Established theories of the multinational enterprise (MNE) were created for a different, less globally competitive world. Today’s MNEs are moving toward the stateless ideal type known as a metanational. Because considerable central authority remains, we call the emerging model the meta-MNE and use the dynamic capabilities framework to analyze this phenomenon. Strong dynamic capabilities, including asset orchestration, are necessary both for the very existence of the meta-MNE and for sustaining its competitive advantage. We draw contrasts between the meta-MNE and the traditional, home-centric MNE. We consider the ways in which nations still matter and the policy implications of the emergence of the meta-MNE. We also discuss recent developments in China that have greatly shaped the environment facing existing and future meta-MNEs.