Increased Dispersion Necessitates Better Management. UNCTAD (1993) concludes that
MNEs’ integrated sourcing, technological production and marketing networks alter the dynamics of the international location of FDI. Particularly, ownership advantages are exploited through networks of intra-firm and/or inter-firm
transactions. Duysters et al. (1999) identify three implications from this network perspective.
Firstly, collaborations should be managed within a portfolio of alliances. Partner selection therefore becomes crucial, and should invoke an analysis of bilateral and multilateral fit of respective contributions. Secondly, the network should leverage knowledge and diffuse it across organizational frontiers. Thirdly, as there is a difference between managing alliances as contracts, or as a set of competences, combining competences in a network is core to this portfolio approach. This emphasis in alliance management leads to the fourth hypothesis:
Increased Dispersion Necessitates Better Management. UNCTAD (1993) concludes thatMNEs’ integrated sourcing, technological production and marketing networks alter the dynamics of the international location of FDI. Particularly, ownership advantages are exploited through networks of intra-firm and/or inter-firmtransactions. Duysters et al. (1999) identify three implications from this network perspective.Firstly, collaborations should be managed within a portfolio of alliances. Partner selection therefore becomes crucial, and should invoke an analysis of bilateral and multilateral fit of respective contributions. Secondly, the network should leverage knowledge and diffuse it across organizational frontiers. Thirdly, as there is a difference between managing alliances as contracts, or as a set of competences, combining competences in a network is core to this portfolio approach. This emphasis in alliance management leads to the fourth hypothesis:
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