ABSTRACT
In this chapter, the authors demonstrate two specific shortcomings in static approaches to the analysis of multinational enterprises (MNEs). First specific shortcoming is a number of puzzles lurk in the empirical research on MNEs that can be resolved once the authors recognise that static models have been applied to systematically changing data without filtering the processes of change. Second specific shortcoming is the business units that the authors study undergoes systematic processes of birth, expansion, contraction and demise that are not well addressed by the standard static theory. The authors summarise empirical and theoretical evidence that has accumulated on change and turnover in the distribution of firms in national markets. They describe evidence and models to findings in the empirical literature on MNEs and deal with an effort to identify unexploited opportunities for research on multinationals. Multinational businesses originating in Asian developing countries probably face high levels of organisational and commercial risks as they first venture abroad.
