Transnational Corporation

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A Transnational Corporation is a Multinational Corporation that does not identify itself with a nation state.



References

2011

  • http://en.wikipedia.org/wiki/Multinational_corporation#Transnational_Corporations
    • A Transnational Corporation (TNC) differs from a traditional MNC in that it does not identify itself with one national home. Whilst traditional MNCs are national companies with foreign subsidiaries,[1] TNCs spread out their operations in many countries sustaining high levels of local responsiveness.[2] An example of a TNC is Nestlé who employ senior executives from many countries and try to make decisions from a global perspective rather than from one centralised headquarters.[3] However, the terms TNC and MNC are often used interchangeably.

      A study of Dutch[ multi-national corporation]]s showed that foreign expansions best unfold sequentionally, consistent with the notions of organizational learning. Firms ought to diversify first into culturally (and less so geographically) nearby countries before they venture farther away. They do so more successfully if they also follow a learning process by mode (e.g, greenfield based expansion versus acquisitions or equity joint ventures) or by level of ownership.[4]

  1. Drucker, Peter F. (1997). The Global Economy and the Nation State. Council on Foreign Relations. p. 167. 
  2. Case study: The Relationship between the Structure/Strategy of Multinational Corporations and Patterns of Knowledge Sharing within them. Oxford University Press. 2009. http://www.oup.com/uk/orc/bin/9780199534975/01student/cases/case_ch04.pdf. 
  3. Schermerhorn, John R. (2009). Exploring Management. John Wiley and Sons. p. 387. ISBN 0470169648. 
  4. Pennings, Johannes M, Barkeman, Harry G and Douma, Sytze (1994). “Organizational Learning and Diversification." 'Academy of Management Journal'. 17, No. 3, 608-640.