The economic theory of the firm as a foundation for international business theory

The economic theory of the firm is central to the theory of the multinational enterprise. Recent literature on multinationals, however, makes only limited reference to the economic theory of the firm. Multinationals play an important role in coordinating the international division of labour through internal markets. The paper reviews the economic principles that underlie this view. Optimal internalisation equates marginal benefits and costs. The benefits of internalisation stem mainly from the difficulties of licensing proprietary knowledge, reflecting the view that MNEs possess an ‘ownership’ or ‘firm-specific’ advantage. The costs of internalisation, it is argued, reflect managerial capability, and in particular the capability to manage a large firm. The paper argues that management capability is a complement to ownership advantage. Ownership advantage determines the potential of the firm, and management capability governs the fulfilment of this potential through overcoming barriers to growth. The analysis is applied to a variety of issues, including out-sourcing, geographical dispersion of production, and regional specialisation in marketing.

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.

International Business Research Forum

Professor Rodrigo Bandeira de Mello fala sobre o International Business Research Forum (IBRF)

Aircraft accident report : International Business Machines, inc., Grumman G-1159, N720Q, Kline, South Carolina, June 24, 1974 /

"File no. 3-1400."

Final reports of the International business conference. Private interprise; raw materials and foodstuffs; encouragement and protection of investments; industrialization in new areas; currency relations among nations; transportation and communications; cartels; commercial policy of nations; also roster of attendance. Westchester country club, Rye, New York, November 10-18, 1944.

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Postcolonialism and the politics of qualitative research in international business

This paper offers a re-configuration of international business research by subjecting it to a postcolonial critique. This critique sees international business research as exhibiting continuities with the colonial project in the way it appropriates the Other. Qualitative research in international business often reproduces a neopositivist separation of theory and method, which can marginalize discussion of the important ontological, epistemological and political issues inherent in any research process

Globalisation and connectedness: A network approach to international business

There have been recent calls for the field of International Business to retool its routines by becoming genuinely interdisciplinary. This paper takes such an approach by using recent advances in the fields of evolutionary economics and applying them to IB. Evolutionary economists are now viewing the economy as an actual network. Consequently, one the key analytical tools in this approach is network analysis. Some of the basic methods in network analysis are reviewed. The paper then looks at how using these tools might be of use in IB studies. In particular, it outlines fruitful research paths in the areas of globalisation and regionalisation, and the measurement of performance in multi-national firms and alliances. In each case, propositions are put forward which can be analytically tested with the use of network analysis. The paper concludes with a brief outline of a research agenda which utilises this approach in International Business studies.