LAUSR

Abstract This paper addresses the theories of global strategy from the contrasting perspectives of MNEs and business ecosystems. A business ecosystem approach has become pervasive regarding strategic management and international business. Although this perspective can be useful to describe the specific phenomenon of new business models at the system level, it seems that scholars have yet to develop a new normative theory on why, when, and how firms benefit from business ecosystems. The existing theories of the global strategy for MNEs are originated from the extensive research streams about ownership advantages from the standpoint of Coase's theory of the firms. In contrast, international business scholars may need to turn attention to some alternative research streams that can provide a fertile ground for building a new theory of global strategy for business ecosystems from the perspective of Hayek's dispersed knowledge economy. For the purpose of facilitating this paradigm shift in global strategy, this article proposes (1) a theory-building framework to identify assumptions, theoretical pillars, and theoretical building blocks and (2) a research agenda to shed light on new directions for global strategy research and help scholars to develop normative research beyond the descriptive research on business ecosystems.