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Abstract As pointed out recently by Kogut (forthcoming), the late 1980s have witnessed a significant evolution of academic interest in the MNC. An important element of this shift has been a change in the focus of research away from the dyadic headquarters-subsidiary relationship in MNCs, or the specific decision of a company to invest in a foreign location, to the coordination tasks of managing a network of established foreign subsidiaries and analysis of the competitive advantages that arise from the potential scope economies of such a network.
Ghoshal et al. (Mon,) studied this question.