Digitalized service multinationals and international business theory

Jean-Francois Hennart*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Banalieva and Dhanaraj argue that digital service multinationals (DSMNCs) possess a new category of firm-specific advantage (FSA), the network advantage, and that, contrary to extant theory, they use networks as a mode of governance. I review the business models used by DSMNCs, compare them to non-digital ones, and explore what we can learn about them from extant IB theory. I conclude that network advantages are not a new category of FSAs, that networks are not a mode of governance, and that their use by DSMNCs is well explained by extant theory.

Original languageEnglish
Pages (from-to)1388-1400
JournalJournal of International Business Studies (JIBS)
Volume50
Issue number8
DOIs
Publication statusPublished - Oct 2019

Keywords

  • internalization theory
  • transaction cost theory
  • networks
  • services
  • digital platforms
  • TRANSACTION COST THEORY
  • MARKET
  • CHOICE
  • CORPORATION
  • GOVERNANCE
  • FIRM

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