TY - JOUR
T1 - More than intent
T2 - A bundling model of MNE-SME interactions
AU - Hennart, Jean-Francois Marie Andre
PY - 2020
Y1 - 2020
N2 - As a counterpoint to Prashantham and Birkinshaw, I present an alternative model of MNE–SME cooperation where either type of firms can take the role of content provider or distributor. I argue that MNEs will interact with SMEs when there are differences in optimal scale between the content creation and distribution stages of the value chain, and it is not feasible or efficient for either party to vertically integrate between these two stages. I then build two 2 × 2 bundling models, one in which the SME provides content and the MNE distributes it, and another with the reverse configuration. In these 2 × 2s the axes are the transactional properties of the two complementary inputs, content and distribution, that MNEs and SMEs bundle to create value. I show that these models can explain the forms taken by MNE–SME cooperation and their dynamics.
AB - As a counterpoint to Prashantham and Birkinshaw, I present an alternative model of MNE–SME cooperation where either type of firms can take the role of content provider or distributor. I argue that MNEs will interact with SMEs when there are differences in optimal scale between the content creation and distribution stages of the value chain, and it is not feasible or efficient for either party to vertically integrate between these two stages. I then build two 2 × 2 bundling models, one in which the SME provides content and the MNE distributes it, and another with the reverse configuration. In these 2 × 2s the axes are the transactional properties of the two complementary inputs, content and distribution, that MNEs and SMEs bundle to create value. I show that these models can explain the forms taken by MNE–SME cooperation and their dynamics.
KW - MNE–SME cooperation
KW - bundling model
KW - networks
KW - transaction cost theory
KW - value chain
UR - http://www.scopus.com/inward/record.url?scp=85089154423&partnerID=8YFLogxK
U2 - 10.1057/s41267-020-00352-8
DO - 10.1057/s41267-020-00352-8
M3 - Journal article
SN - 0047-2506
VL - 51
SP - 1176
EP - 1194
JO - Journal of International Business Studies
JF - Journal of International Business Studies
IS - 7
ER -