Multinationals as Flagship Firms

This book develops a conceptual framework for understanding the network of relationships that exists around the hub of large multinational firms. The authors bring together perspectives from international business and the organizational analysis of networks to explain their model which is supported by case evidence from several sectors–telecoms, autos, chemicals, retailing, and financial services. The international dimension of business networks has remained relatively unexplored, mainly because international business writers focus upon multinational enterprises and network writers ignore international issues. In this book Professors Alan Rugman and Joseph D'Cruz bridge the literature on networks and multinationals by introducing the new concept of the flagship firm. In each business network strategic leadership is provided by the flagship firm, which is defined as a multinational enterprise. It has other partners: key suppliers; key customers; key competitors; and key partners in the non-business infrastructure. These business networks are usually located in the 'triad' regions of the European Union, North America, and Japan. There are strong cross-border network linkages within these regions, but less 'globalization' than regional economic integration. The theory of the flagship firm/five partners model is applied to the telecommunications, chemicals, automotive, and electronics sectors, amongst others, and the book reports on both empirical studies and field research of the international competitiveness of these sectors. The book will be of interest to academics, students, and professionals in the areas of international business, strategic management, political science, law, and sociology.