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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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The Theory of the Flagship Firm

The Theory of the Flagship Firm

(p.82) 6 The Theory of the Flagship Firm
Multinationals as Flagship Firms

Alan M. Rugman

Joseph R. D’cruz

Oxford University Press

A flagship firm is a multinational establishment which has come up with a business network consisting of four major partners: leading providers, clients, competitors, and non-business infrastructures. The prevalence of business networks are common in sectors that have absorbed and employed internalisation and globalisation. Control over all the operations and scope of responsibilities of all the partners is contained under the flagship firm’s authority. Members of the network are ensured with heightened trade levels, mutual reinforcements, cooperative undertakings, competitive advantage in both local and international markets, and secured long-range contracts, provided that they continue with their membership of the flagship firm. Strategic management components, type of leadership, organisational structure, and other features of this system are included in the discussion.

Keywords:   flagship, multinational enterprise, business networks, five partners, international market

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