The strategic management of multinationals in a triad-based world economy

Within the context of an evolving economic order, the changing role of the multinational company captures the spotlight, especially in regard to the increasing importance of strategic decision making and networking and the more complete role taken up by subsidiaries. In this critical analysis of Porter's (1990) popular study of competitive advantages, it is posited that the international corporate activities are insufficiently incorporated and that the triadic dimension and economic bloc formation among countries are not sufficiently taken into account. As the drivers of the world economic “triadization,” many MNCs transform themselves into regional clusters rather than global or transnational structures. The triadic constellation requires more coordination from national governments in areas such as competition, merger activity, and research policy. To participate fully in the global economy, national governments are switching to macroorganizational policies that are proactive. The proliferation of strategic alliances among MNCs is creating special challenges to the competition policies of national governments. Now that the relative share of developing countries in the inward direct-investment flows is increasing again, the opening up of the Triad to developing countries may have begun.