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date: 17 November 2018

Abstract and Keywords

When corporations mature, they may become large multinational firms. However, despite the large amount of literature on the internal organization and governance of multinational firms, there is a lack of knowledge about corporate governance in them. This chapter discusses multinational firms, which are described as complicated organizations with complex corporate governance mechanisms. It first presents a review of literature on the governance of multinational firms, and then identifies three main research streams: headquarter governance, coordination and control of foreign subsidiaries, and knowledge flow within multinational firms. A second literature review in the chapter focuses on the influence of governance on the internationalization process. The chapter also studies the governance problems that are presented by the classic models of international business.

Keywords: multinational firms, corporate governance mechanisms, headquarter governance, foreign subsidiaries, knowledge flow, internationalization, governance problems, international business

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