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The Problem of control and the role of home-host ties in explaining multinationals foreign operations.
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The Problem of control and the role of home-host ties in explaining multinationals foreign operations.

2,011 Chicago Global Strategy Journal, v. 1,  p. 362-376, 2011.   RANGAN, Subramanian;  DRUMMOND, Aldemir. Article Rangan, Subramanian RANGAN, Subramanian;  DRUMMOND, Aldemir. The existing multinational enterprise (MNE) literature has focused on capabilities and value creation challenges, including related to cultural and other distance. To better understand heterogeneity in the foreign country performance of MNEs, however, we need to go beyond the global strategy challenges of capabilities and coordination. Specifically, we need to explore MNEs' value capture challenges abroad and attend to control as a chronic dilemma that is inadequately addressed by internalization. In operating in foreign host countries, MNEs are chronically exposed to two types of largely uninsurable discretion: sovereign discretion of host governments and delegated discretion of host country employees, partners, suppliers, and such. Inglês 334.726 R196p 2011