A multinational corporation consists of a group of geographically dispersed and goal-disparate organizations that include its headquarters and the different national subsidiaries. Such an entity can be conceptualized as an interorganizational network that is embedded in an external network consisting of all other organizations such as customers, suppliers, regulators, and so on, with which the different units of the multinational must interact. Based on such a conceptualization, the present authors draw on interorganization theory to develop a model of the multinational corporation as an internally differentiated interorganizational network. They propose hypotheses that relate certain attributes of the multinational, such as resource configuration and internal distribution of power, to certain structural properties of its external network.
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