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Multinationals as Flagship FirmsRegional Business Networks$
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Alan M. Rugman and Joseph R. D'Cruz

Print publication date: 2003

Print ISBN-13: 9780199258185

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199258185.001.0001

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Corporate Strategy and the Flagship Firm

Corporate Strategy and the Flagship Firm

(p.30) 3 Corporate Strategy and the Flagship Firm
Multinationals as Flagship Firms

Alan M. Rugman

Joseph R. D’cruz

Oxford University Press

The chapter begins with a discussion of examples from various countries exhibiting the innovation and employment of market power along with collaborative links with international companies and personalities in order to acquire competitive advantage. Such cooperative efforts, grounded by the principles and components of the five partners approach, are believed to produce effective and efficient business networks. Elaborated in the succeeding paragraphs are the characteristics, definition, and sources of the five partners, namely flagship firm, chief suppliers, major clients, competitors, and NBIs. While there is the goal of standing out at the international level, there are also instances when flagships within a specific country compete with each other; particularly, the four dominant automakers of Japan. These internation rivalries consider market-sharing treaties, developmental and technological arrangements, and programmes of supplier improvement.

Keywords:   innovation, market power, competitive advantage, cooperation, five partners

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