Introduction

Discussion

Conclusions and suggestions for further studies

References

Abstract

Purpose – The purpose of this paper is to introduce a new research construct to depict more accurately organisational structure and the direction of organisational changes in large multinational corporations (MNCs).
Design/methodology/approach – The paper presents an overview of the existing literature on the phenomenon of anisotropy in natural sciences and the organisation of large corporations, and transforms an identified phenomenon into a research construct of organisational theory.
Findings – This paper demonstrates that anisotropy, that is, the differences in the speed and conductivity of the movement of capital (money), products (goods and services), ideas (knowledge) and talent (people) in different directions within the corporation ( from the centre to the subsidiaries, from the subsidiaries to the corporate centre and between subsidiaries) is the normal state of the internal space of the MNC. Anisotropy is increasing with the on-going restructuring of the global economic order. This leads to the divergence of business units in MNCs into the core and the periphery.
Research limitations/implications – The paper outlines a series of promising research avenues in organisational studies.
Originality/value – The paper provides a novel treatment of the composition of MNCs.

Introduction

It has become increasingly clear that a restructuring of the economic order has been taking place and, in particular, has affected multinational corporations (MNCs) and others doing business across borders. For example, after the 2008 crisis, capital flows between countries and trade in goods and services have retreated significantly to levels not seen in a quarter of a century (Sharma, 2016, p. 2). The evidence of a new era of “anti-globalisation” became evident to practitioners, policy analysts (Ludeña, 2017) and academics (Kobrin, 2017; Globerman, 2017; Meyer, 2017). The new economic order means costlier capital, an expanded government role, reinvented trade barriers, restriction of workforce movement between countries and a much larger regulatory and taxation burden as firms find it more difficult to shift activities and park funds in the most favourable locations. Our essay points out that the “new economic order” is merely a partial restoring of the state of the global economy which existed prior to 1992 and which was characterised by high anisotropy of the economic space that affected the structure and functioning of the (western) MNCs. We introduce the research construct and properties of anisotropy in the corporate space, and outline promising research avenues for organisational studies, especially research related to the changes in the organisation and functioning of large MNCs.