International coherence and MNE performance

We introduce the concept of International Coherence (IC) to describe the degree of relatedness in a multinational enterprise (MNE). We propose that IC hinges on the interplay of the relatedness between any two MNE units and the linkages that tie them together. Linkages can be thought of as the often costly “pipes” that allow the “content”, that is, resources and information that define relatedness, to “flow”. We argue that greater IC increases...