A location–allocation model for the multinational enterprise with special emphasis on knowledge flows

[German title: Ein Standort-Ressourcenverteilungs-Modell für das multionationale Unternehmen unter besonderer Berücksichtigung von Wissensflüssen]

Knowledge flows and the modelling of the multinational enterprise
Nicole Adler and Niron Hashai
Journal of International Business Studies (2007) 38, 639–657.

Abstract: This research develops a location–allocation, mixed integer linear model that simultaneously evaluates a substantial number of multinational enterprise (MNE) location and control configurations to yield an optimal network, considering R&D, production and marketing facilities, produced in-house and/or outsourced. The model places special emphasis on the role of intra-firm, inter-firm and extra-firm knowledge flows in addressing cost minimisation considerations of MNEs. A simulation analysis is undertaken to evaluate potential solutions from such a framework and to analyse their consistency with theoretical expectations.

Keywords: multinational enterprise, modelling, optimisation, knowledge flow, internationalisation, internalisation

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Copyright © 2007 Palgrave Macmillan Ltd.

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