Question/Issue: Institutional and transaction costs theories highlight the idea that group affiliated firms outperform unaffiliated firms in emerging economies. The persistence of superior performance for group affiliated firms is, however, questioned by the fast and recent development of...

Abstract: In this study we discuss and empirically test the assertion that over the last two decades multinational enterprises' (MNEs') configuration of value-adding activities has shifted from a sparse and simple (host-home) international division of labor among the foreign affiliates to a more...

This case was prepared by Professor Torben Pedersen and Research Assistant Marcus Møller Larsen of the Copenhagen Business School. We thank Vestas Wind Systems A/S for its helpful collaboration in developing this case. The case is developed solely as a basis for classroom discussion rather than...