Successful reconfiguration and network evolution within the multinational company

Abstract

Purpose

This article aims to contribute to a better understanding of how multinational companies can succeed the reconfiguration of their internal structures. The theoretical framework is based on the concept of reconfiguration as a dynamic capability, the Uppsala evolution model and the business network view.

Design/methodology/approach

The authors conducted a case study on the reconfiguration of two vertically-related business units within the Solvay group, a world leader in the chemical industry. The empirical study is based on interviews, observations and secondary data.

Findings

The paper shows how a multinational enterprise can succeed in reorganizing its internal structures to overcome internal liability of outsidership and to be more competitive and profitable. The reconfiguration enabled Solvay to become a fully integrated leader in the polyamide plastics industry.

Originality/value

The paper explains how the internal reorganization has improved the competitiveness and profitability of the integrated business units.

Citation

Valdemarin, S. and Mayrhofer, U. (2022), "Successful reconfiguration and network evolution within the multinational company", Journal of Organizational Change Management, Vol. 35 No. 3, pp. 527-540. https://doi.org/10.1108/JOCM-12-2020-0367