Making internalization theory good for practice: the essence of Alan Rugman’s contributions to international business

This perspectives paper and its associated commentaries examine Alan Rugman's conceptual contribution to international business scholarship. Most significantly, we highlight Rugman's version of internalization theory as an approach that integrates transaction cost economics and ‘classical’ internalization theory with elements from the resource-based view, such that it is especially relevant to strategic management. In reviewing his oeuvre, we also offer observations on his ideas for ‘new internalization theory’. We classify his other novel insights into four categories: Network Multinationals; National competitiveness; Development and public policy; and Emerging Economy MNEs. This special section offers multiple views on how his work informed the larger academic debate and considers how these ideas might evolve in the longer term.

Business

This main argument of the chapter is that the explanation of the slow pace of business action requires a socio-cultural theory that transcends the narrow premises of dominant corporate social responsibility (CRS) and business management approaches. I assert that only a critical political economy approach which captures the complex interplay between cultural ideas, power, politics, and economic interests can provide basis for explaining the prospects and limits of corporate climate governance. My argument, which draws from similar existing works (Levy and Egan 2003, Levy and Newell 2005, Okereke et al. 2009) is focused on carbon-intensive multinational companies (MNCs) whose activities are generally considered crucial in shaping societal response to climate change (McKibben 2012).