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Lorenzen M, Mudambi R, Schotter A. International connectedness and local disconnectedness: MNE strategy, city-regions and disruption. J Int Bus Stud. 2020;1-24doi: 10.1057/s41267-020-00339-5.
Lorenzen, M., Mudambi, R., & Schotter, A. (2020). International connectedness and local disconnectedness: MNE strategy, city-regions and disruption. Journal of international business studies, 1-24. https://doi.org/10.1057/s41267-020-00339-5
Lorenzen, Mark, et al. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption." Journal of international business studies vol. (2020): 1-24. doi: https://doi.org/10.1057/s41267-020-00339-5
Lorenzen M, Mudambi R, Schotter A. International connectedness and local disconnectedness: MNE strategy, city-regions and disruption. J Int Bus Stud. 2020 Jun 24;1-24. doi: 10.1057/s41267-020-00339-5. Epub 2020 Jun 24. PMID: 32836501; PMCID: PMC7311799.
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J Int Bus Stud. 2020 Jun 24;1-24. doi: 10.1057/s41267-020-00339-5. Epub 2020 Jun 24.

International connectedness and local disconnectedness: MNE strategy, city-regions and disruption.

Journal of international business studies

Mark Lorenzen, Ram Mudambi, Andreas Schotter

Affiliations

  1. Department of Strategy and Innovation, Copenhagen Business School, Kilevej 14A, 2nd Floor, 2000 Frederiksberg, Denmark.
  2. Department of Strategic Management, Fox School of Business, Temple University, 1801 Liacouras Walk, Philadelphia, PA 19122 USA.
  3. Ivey Business School, Western University, 1255 Western Road, London, ON Canada.

PMID: 32836501 PMCID: PMC7311799 DOI: 10.1057/s41267-020-00339-5

Abstract

Much of the rising international connectedness of city-regions has developed from MNEs replacing local connections with (superior) international ones. This often creates local disconnectedness that energizes the current populist backlash against MNE activities. We develop approaches to new IB theory, addressing the interdependencies of MNEs and city-regions that we propose as a crucial avenue for future research. We contrast two generic MNE strategies. The first is the traditional one: the 'global orchestration' of resources and markets. We argue that it exacerbates local disconnectedness. The second, that we call 'local spawning,' involves engaging with the local entrepreneurial eco-system to create and renew local connectedness, diffusing populist responses. Some MNEs are better able to implement a local spawning strategy, due to industry factors like innovation clock-speed, and firm characteristics like organizational path dependency. Finally, we distinguish between disconnection, which is an outcome of MNE strategy, and global disruptions, like the coronavirus (COVID-19) pandemic, which are primarily stochastic events. Addressing disconnections requires MNEs to re-orient their strategies while dealing with disruptions requires undertaking risk mitigation. We present empirical evidence from city-regions around the world to illustrate our theory.

© Academy of International Business 2020.

Keywords: MNE geography; MNE strategy; city-regions; disruption; global cities; global value chains; knowledge transfer; off shoring

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