Abstract
Purpose – This paper aims to propose a way of addressing unresolved issues in international
business theory.
Design/methodology/approach – A new model of the multinational enterprise as a coordinator of
supply chains is presented.
Findings – This paper identifies a new market-seeking strategy that is an alternative to conventional
strategies, such as exporting, licensing and foreign direct investment, and analyses the conditions
under which it will be adopted by firms. The new strategy involves the offshoring of production and
the out-sourcing of research and development, and is implemented through co-operation between a
source country firm and a host country firm.
Originality/value – This paper presents a new way of modelling international business as a supply
chain system, which can be easily extended in various ways.
Keywords Multinational enterprise, Supply chain, Internalisation, Licensing, Coordination,
Offshore production, Multinational companies, Supply chain management
Paper type Research paper