UDC 347.471
Biblid: 0025-8555, 63(2011)
Vol. 63, No 2, pp. 237-259
DOI: https://doi.org/10.2298/MEDJP1102237P
Оriginal article
Received: 15 May 2011
Accepted: 15 Jun 2011
COMPETITIVE ADVANTAGES OF MULTINATIONAL COMPANIES – A REVIEW OF THEORETICAL APPROACHES
PESALJ Biljana (Dr Biljana Pesalj, Assistant, Faculty of Economics, University of Belgrade), biljana.pesalj@gmail.com
According to knowledge and network-based theories of multinational companies (MNCs), the main source of MNC competitive advantage is the creation and transfer of knowledge within the MNC system. The processes of knowledge creation and knowledge transfer are extensively investigated in the present literature. However, there are issues that are still underdeveloped, such as control and organizational mechanisms as a micro foundation of modern MNC theories. This paper is aimed at presenting an overview of the modern theoretical approaches of MNC competitive advantages from the managerial point of view. The applicability of these concepts is further considered in the case of MNC affiliates doing their business in transition economies in order to provide guidelines for future empirical research.
Keywords: multinational companies, knowledge-based theory, network-based theory, transition economies