The New MNE: From ‘Internalisation’ to a Theory of Orchestration

22 Pages Posted: 7 Sep 2017

See all articles by Christos N. Pitelis

Christos N. Pitelis

Brunel University London

David Teece

Institute for Business Innovation

Date Written: June 6, 2017


We critically assess varieties of internalisation theory of the MNE. We discuss their limitations and explain why the time has come to move to an orchestration theory of the MNE. Orchestration theory, rooted in and encompassing the dynamic capabilities framework, helps explain a number of MNE phenomena that challenge internalisation theory, including entrepreneurship, learning, and inter-firm cooperation. We also discuss prospects for further research using an orchestration approach.

Keywords: Orchestration, Internalisation, Multinational Enterprise, Foreign Direct Investment, International Operations

Suggested Citation

Pitelis, Christos N. and Teece, David J., The New MNE: From ‘Internalisation’ to a Theory of Orchestration (June 6, 2017). Available at SSRN: or

Christos N. Pitelis

Brunel University London ( email )

Brunel Business School
London, UB8 3PH
United Kingdom

David J. Teece (Contact Author)

Institute for Business Innovation ( email )

F402 Haas School of Business, #1930
Berkeley, CA 94720-1930
United States
(510) 642-4041 (Phone)

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