The development of strategic capability through multi national corporations

This paper researches the buyer I Multi National Corporation's (MNC's) pre contract award relationship when developing strategy capability with a view to the development of a good practice model at this interface. The research was based on the use of transaction cost and duration as comparative measures. The research examines the pre contract award corporate governance of capability development by a major Australian buyer organization, the Australian Department of Defence (ADoD). Comparative case study data of 106 ADoD/MNC strategic capability developments with many different MNC suppliers was researched. The research compares pre contract award strategic capability development process transaction cost and duration. These comparisons provide a quantitative basis for suggesting a strategic capability delivery model for greater efficiency and effectiveness for both buyer, in this case the ADoD, and MNC supplier.