Revisiting Ghoshal and Bartlett’s Theory of the Multinational Corporation as an Interorganizational Network

Abstract

More than 25 years after its appearance, Ghoshal and Bartlett’s seminal paper ‘The Multinational Corporation as an Interorganizational Network’ stands as a widely recognized but insufficiently understood contribution to the international management literature. This paper reviews related literature, celebrates and critically discusses Ghoshal and Bartlett’s work and proposes ways to address its main limitations, which are a lack of a defined set of parameters describing networks and the delineation of network boundaries. We then translate their theory into concrete propositions and thereby bring it closer to empirical testing. Taking a subsidiary-network perspective, we expand the authors’ work by combining network and entrepreneurship literature and theoretically deducting positive effects of networks on subsidiary entrepreneurial orientation. This yields entirely new insights and a more holistic view of the effects of subsidiary networks.