Digitalized service multinationals and international business theory

Jean-François Hennart

Publication: Scientific journalJournal articleResearchpeer-review


Banalieva and Dhanaraj argue that digital service multinationals (DSMNCs) possess a new category of firm-specific advantage (FSA), the network advantage, and that, contrary to extant theory, they use networks as a mode of governance. I review the business models used by DSMNCs, compare them to non-digital ones, and explore what we can learn about them from extant IB theory. I conclude that network advantages are not a new category of FSAs, that networks are not a mode of governance, and that their use by DSMNCs is well explained by extant theory.
Original languageEnglish
Pages (from-to)1388-1400
JournalJournal of International Business Studies
Issue number8
Publication statusPublished - 1 Oct 2019
Externally publishedYes

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