The Global Factory
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The Global Factory

Networked Multinational Enterprises in the Modern Global Economy

Peter J. Buckley

This key new book synthesises Peter Buckley's work on ‘the global factory’ – the modern networked multinational enterprise. The role of interfirm networks, entrepreneurship and cooperation in the creation and management of global factories leads to a discussion of their governance, internal knowledge transfer strategies and performance, including their role in potentially combating societal failures. Emerging country multinationals are examined as a special case of global factories with a focus on Indian and Chinese multinationals, their involvement in tax havens and offshore financial centres, the performance and processes of their acquisition strategies – all seen as key aspects of globalisation.
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Chapter 5: The principle of congruity in the analysis of international business cooperation

Networked Multinational Enterprises in the Modern Global Economy

Peter J. Buckley, Adam Cross and Claudio De Mattos

Abstract

This study investigates an under-researched topic: individual-to-individual or team-to-team interactions during the alliance pre-formation phase. We develop a general theory based on the principle of congruity for understanding the micro-dynamics of the alliance formation process. The attitudes of each party in an alliance towards their prospective partner depend on the level of mismatch between their initial evaluations of the contributions of each partner, and on their wish intensity and speed to reach congruity. The impact of different managerial cultural backgrounds (special theory) and mind-sets (special theory application) are theorised. Further applications are considered and all are presented as testable propositions.

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