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    International connectedness and local disconnectedness: MNE strategy, city-regions and disruption

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    International connectedness and ...
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    Genre
    Post-print
    Date
    2020-10-01
    Author
    Lorenzen, M
    Mudambi, R
    Schotter, A
    Subject
    MNE strategy
    global cities
    city-regions
    disruption
    global value chains
    off shoring
    MNE geography
    knowledge transfer
    Permanent link to this record
    http://hdl.handle.net/20.500.12613/4474
    
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    DOI
    10.1057/s41267-020-00339-5
    Abstract
    © 2020, Academy of International Business. Much of the rising international connectedness of city-regions has developed from MNEs replacing local connections with (superior) international ones. This often creates local disconnectedness that energizes the current populist backlash against MNE activities. We develop approaches to new IB theory, addressing the interdependencies of MNEs and city-regions that we propose as a crucial avenue for future research. We contrast two generic MNE strategies. The first is the traditional one: the ‘global orchestration’ of resources and markets. We argue that it exacerbates local disconnectedness. The second, that we call ‘local spawning,’ involves engaging with the local entrepreneurial eco-system to create and renew local connectedness, diffusing populist responses. Some MNEs are better able to implement a local spawning strategy, due to industry factors like innovation clock-speed, and firm characteristics like organizational path dependency. Finally, we distinguish between disconnection, which is an outcome of MNE strategy, and global disruptions, like the coronavirus (COVID-19) pandemic, which are primarily stochastic events. Addressing disconnections requires MNEs to re-orient their strategies while dealing with disruptions requires undertaking risk mitigation. We present empirical evidence from city-regions around the world to illustrate our theory.
    Citation to related work
    Springer Science and Business Media LLC
    Has part
    Journal of International Business Studies
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    For Americans with Disabilities Act (ADA) accommodation, including help with reading this content, please contact scholarshare@temple.edu
    ae974a485f413a2113503eed53cd6c53
    http://dx.doi.org/10.34944/dspace/4456
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