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In chapter 6 Kay tries to build an explicitly resource-based perspective of the TNC. He discusses reasons for the failure of resource-based theory to make inroads into the theory of the TNC, despite some useful earlier attempts. In his version, specialization as a strategy dominates diversification in general, and geographical diversification in particular. In this context, the TNC is a sign of weakness rather than strength. It comes about when richer-linked strategies become unavailable.