This article aims to contribute to a better understanding of how multinational companies can succeed the reconfiguration of their internal structures. The theoretical framework is based on the concept of reconfiguration as a dynamic capability, the Uppsala evolution model and the business network view.
The authors conducted a case study on the reconfiguration of two vertically-related business units within the Solvay group, a world leader in the chemical industry. The empirical study is based on interviews, observations and secondary data.
The paper shows how a multinational enterprise can succeed in reorganizing its internal structures to overcome internal liability of outsidership and to be more competitive and profitable. The reconfiguration enabled Solvay to become a fully integrated leader in the polyamide plastics industry.
The paper explains how the internal reorganization has improved the competitiveness and profitability of the integrated business units.
