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Multinational Complexity and MNC Performance: A Strategic Schema Fit Model
Type
conference paper
Date Issued
2014-08-01
Author(s)
Abstract
Examining the role of strategic schemas on the multinational performance relationship our conceptual paper adds to the literature in two important ways. First, by opening the black-box of the firm and incorporating the cognition research approach of strategic schemas we contribute to the growing importance of microfoundations by developing a strategic schema fit model for the relationship between multinational complexity and firm performance. Hence, we shed more light on the heterogenic capabilities of firms to cope with multinational complexity. Second, by conceptualizing multinationality as multinational complexity we expand the multidimensional perception of multinationality and contribute to a more fine-grained account of the level of multinationality that firms are faced with. We propose that firms with a more complex strategic schema have a relatively larger strategic flexibility. Building on earlier insides we theorise that strategic flexibility is the superior frame to process multinational complexity and to achieve a relatively higher performance.
Language
English
Keywords
strategic schemas
multinationality
psychic distance
firm performance
cognition
RBV
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Proceedings of the 56th Annual Meeting of the Academy of International Business "Local Contexts in Global Business"
Publisher
Academy of International Business
Start page
248
Event Title
74th Academy of Management Annual Meeting (AOM) 2014 "The Power of Words"
Event Location
Philadelphia, PA
Event Date
01-05.08.2014
Subject(s)
Division(s)
Eprints ID
239530