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Business Systems and Organizational CapabilitiesThe Institutional Structuring of Competitive Competences$
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Richard Whitley

Print publication date: 2007

Print ISBN-13: 9780199205172

Published to Oxford Scholarship Online: January 2008

DOI: 10.1093/acprof:oso/9780199205172.001.0001

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Divergent Multinational Firms: Home and Host Economy Effects on Internationalization Strategies and Organizational Capabilities

Divergent Multinational Firms: Home and Host Economy Effects on Internationalization Strategies and Organizational Capabilities

Chapter:
(p.251) 10 Divergent Multinational Firms: Home and Host Economy Effects on Internationalization Strategies and Organizational Capabilities
Source:
Business Systems and Organizational Capabilities
Author(s):

Richard Whitley (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199205172.003.0010

Multinational companies vary considerably in the extent to which they invest key resources in different kinds of market economy and encourage learning from these diverse environments. They therefore differ greatly in the level of organizational innovation and change they undergo as the result of internationalization, and in their development of novel and distinctive characteristics. These variations stem from both the governance and capabilities of the firms concerned, which in turn are connected to their dominant domestic business system characteristics and institutional pressures, and the nature of the business systems to which they commit significant resources. This chapter explores these connections in more detail and shows how companies from different kinds of economies are likely to internationalize their activities in different ways. How three very different ideal types of firms are likely to follow contrasting internationalization strategies is also considered.

Keywords:   multinational companies, organizational change, internationalization, organizational innovation, business system characteristics

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