How ‘Transnational Communities’ affect the National Business Systems that Leads to Creation of a ‘Global Value Systems'?

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In case of TNC’s management and strategies, two focal spaces are highlighted; one is the institutions in which home and the host contexts are prioritized; and two is the transnational firm in which a central focus is given to the spaces emerged from the global governance structure and the networks of TNCs. Borrowing from the business system literature, transnational community is conceptualized on the notion of multiple embeddedness of the transnational firm in and around multiple spaces of the world. In this study, I have elaborated the concept of ‘transnational communities’, which Morgan (2001) developed, based on the notion of migration of transnational firms and the people, the global and multilateral organizations, and the multiple business systems with which TNCs and the migrant people are linked.
Beginning from Morgan (2001) who first conceptualized the term ‘transnational communities’ in international management, I attempt to elaborate the three dynamics based on three different spaces that constitute transnational communities. First, how transnational firms through their corporate governance and the financial internationalization create multiple spaces, second, how TNCs and the multilateral organizations having been connected by normative and regulative nodes create some spaces, third, how cognitive level of the migrants (diaspora, expatriates) or the people of the TNCs are linked with different spaces (contexts) and schools of thoughts (ideological similarities). These all three components together constitute a social and cognitive space as transnational communities, and at the same time they interact with multiple business systems that are conditioned by the national institutions. Thus, they create a global value system. The transnational communities directly affect the national business systems as and when internationalization and migration of firms and people take place in that context. So, the question of legitimacy arises at every space. In every space of the transnational communities, business actors need to earn or create legitimacy in order to perform efficiently. Therefore, an argument is made considering every component of the transnational communities that how leads to a development of a ‘global value systems’, which affects the national business systems in which foreign firms operate.
Original languageEnglish
Publication date2012
Number of pages42
Publication statusPublished - 2012
EventRevisiting Internationalisation - Dynamics, Diversity And Sustainability - Aalborg University, Aalborg, Denmark
Duration: 31 May 20122 Jun 2012


ConferenceRevisiting Internationalisation - Dynamics, Diversity And Sustainability
CityAalborg University, Aalborg

Bibliographical note

Rana, M.B. and Sørensen, O.J. (2012) “How ‘Transnational Communities’ Affect the National Business Systems that Leads to Creation of a ‘Global Value Systems’?, Presented in the Conference titled ‘Revisiting Internationalisation: Dynamics, Diversity And Sustainability’, May 31, – June 2, held in Comwell Rebild Bakker Conference Centre , Denmark, organised by the Aalborg University, Denmark.


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