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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 Canadian Telecommunications Network

The Canadian Telecommunications Network

Chapter:
(p.98) (p.99) 7 The Canadian Telecommunications Network
Source:
Multinationals as Flagship Firms
Author(s):

Alan M. Rugman

Joseph R. D’cruz

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199258185.003.0007

The authors provide an introduction to the five partners paradigm of business networks as another option for the governance of organisational hierarchies and markets. Such a model is further analysed using the Canadian Telecommunications Network. In Canada, business networks are viewed as containing processes and features that positively contribute to the cost reduction inflicted by non-diversification of assets and by opportunism. Flagship firms play a vital role in the efficient delivery of the responsibilities and successful fulfilment of expectations from business networks. With the asymmetric strategic management and supervision of activities, these multinational enterprises improve the effectiveness of governance structure, specifically in the areas of inter-institutional dependence, stability, and knowledge development. In other words, the application of the guiding principles of the five partners model in Canada has enhanced the country’s market position and competence in the telecommunications field.

Keywords:   five partners, governance structure, Canadian telecommunications, business networks

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