This edited volume contains a short introduction and conclusion by the editor plus 15 chapters (written in English) contributed by scholars at the Institut d'Administration des Entreprises at Jean Moulin Lyon 3 University in France. The chapters address three broad themes: the challenges for multinational companies (MNCs) in the contemporary global economy; the complexity of headquarters-subsidiary relationships; and the management of partnerships, alliances, and networks.
Many of the chapters illustrate key ideas in the International Business field by using case studies of French firms. Catherine Pivot highlights the internationalization strategies of wine companies such as the Castel Group and Pernod-Ricard; Ludivine Chalençon and Emma Moalla consider the international expansion of Accor; Jean-Baptiste Cartier and Christopher Melin focus on headquarters-subsidiary relations in Société Générale and Crédit Agricole; Lusine Arzumanyan and Melin look at the innovation processes in Groupe SEB; Moalla and Dora Triki present details of successful partnerships formed by GL Events; Yves-Frédéric Livian compares and contrasts the fortunes of alliances involving Alcatel-Lucent, Aerospatiale-Matra, Renault, and Danone; and Maha Raïs and Simil Lin consider the outcomes of Sino-French joint ventures involving LVMH, Hermès, Sanofi-Aventis, PSA Peugeot Citroën, Thomson, and Valeo. Two other chapters analyze important phenomena using data on French firms. Fabrice Roth considers the governance of 32 of the largest French MNCs; and Claire Faverjon and François Lantin consider the impact of credit rating downgrades on MNCs' stock prices and their subsequent restructuring actions.
The remaining chapters offer analyses that are not grounded in the French experience. Ulrike Mayrhofer examines the importance of MNCs in the global economy; Catherine Mercier-Suissa looks at the opportunities offered to MNCs by the emergence of the BRIC economies; Jérôme Rive and Paul Marc Collin outline how to analyze international professions within MNCs; Pascale Berthier and Alain Roger consider how competencies may be transferred and/or acquired by expatriate managers in MNCs; Pierre Collin offers some insights for managers involved in constructing international networks; and Aline Pereira Pündrich and Sylvaine Mercuri use Google as an example of implementing CSR in MNCs.
Taken together, these chapters offer some interesting insights into the activities of French MNCs. I was particularly taken by two chapters. The Pivot chapter not only provided an overview of the wine industry, but also brought out the changing objectives of firms in the industry: the search for new markets, adaptation of the product range, reaching critical size, and acquiring greater bargaining power vis-à-vis distribution networks. It is a fascinating study of an industry in which France has long been a major supplier country. The first part of the Faverjon and Lantin chapter involved a standard event study analysis which revealed, perhaps surprisingly, that only half of the downgrades gave rise to a reduction in shareholder value. The more interesting findings related to how the “downgraded” firms then responded strategically over the following six months. Divestiture was the main response to enhance financial flexibility, particularly when the initial rating was low. Financial actions, such as debt restructuring and new share issues, were often undertaken when the rating agencies had highlighted difficult competitive conditions.
Both these chapters drew attention to examples of interesting corporate strategic behavior and suggested (to this reviewer at least) some potentially fruitful areas of research. On a more critical note, I would have liked to see more of the authors in this volume giving consideration to the distinctive French institutional context and to how this impacted the strategies of French MNCs and/or how French MNCs differ (or not) from MNCs from other countries. Or, to put it succinctly, what insights does the study of French MNCs provide over and above the study of US, UK, German, etc. MNCs?
