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The purpose of this paper is to analyse the impact of major structural changes on the conceptualization of the transnational corporation (TNC) based on foreign direct investment (FDI) and on indicators of transnationality.Design/methodology/approachAnalysis of three major structural changes which impact the current conception of transnationality. They are: the rise of digital companies; the increased role of finance in the economy; externalization of activities via non-equity modalities (NEMs) with an impact on FDI and on the labour market.FindingsThe paper finds that the current concept of transnationality needs widening to take account of companies with a low degree of fixed assets abroad such as the digital and the financial companies and those internationalizing via NEMs, as well as to take account of the evolving relationship between TNCs and labour.Research limitations/implicationsFuture research along the lines proposed should consider: working explicitly with the new, inclusive concept of transnationality and arrive at an empirical estimate of the proposed indices of transnationality which modify and amplify the current United Nations Conference on Trade and Development indices.Social implicationsUseful for understanding the nature of transnationality in the twenty-first century and for developing policies.Originality/valueThe paper proposes a new concept of transnationality and of the TNC, one that allows for new ways of organizing direct business activities abroad. It also proposes broadening the list of indicators of transnationality.
Critical Perspectives on International Business – Emerald Publishing
Published: Apr 7, 2022
Keywords: Transnational companies; Digital economy; Indices of transnationality; Digital and technology multinationals; Labour and multinationals; Financial companies; Non-equity modalities; Foreign direct investment; Digital and technology transnationals
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