An extensive summary of all articles and lectures of the course Theories of International Business, which is part of the MCs Business Administration (International Business track) at the University of Amsterdam. The summary is structured per theme. Studying this summary provides a solid basis for t...
MSc Business Administration - International Management
Theories of International Business (6314M0184)
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Theories of International Business
Content
Theme 1: Core IB Theories ................................................................................................................................................ 4
1.2 Industry and Company Value Chains ...................................................................................................................... 4
1.3 Product Life Cycle.................................................................................................................................................... 6
1.4 Firm Specific Advantages ........................................................................................................................................ 7
1.5 Eclectic or OLI Theory.............................................................................................................................................. 7
1.6 Stages (Uppsala) Model .......................................................................................................................................... 9
1.8 Institutional Based View ....................................................................................................................................... 11
Article: Fifty Years of International Business Theory and Beyond – Rugman, Verbeke & Nguyen (2011) ................. 12
Article: The internalisation theory of the multinational enterprise: A review of the progress of a research agenda
after 30 years – Buckley & Casson (2009)................................................................................................................... 14
Article: Towards an Institution-Based View of Business Strategy – Peng (2002) ....................................................... 15
Article: The resource-based view and international business – Peng (2001) ............................................................. 15
Article: The eclectic paradigm as an envelope for economic and business theories of MNE activity – Dunning (2000)
.................................................................................................................................................................................... 16
Theme 2: Regional & Global Integration Processes ........................................................................................................ 19
2.1 Intro to Integration and Globalization .................................................................................................................. 19
2.2 Drivers of Globalization (Garrett article) .............................................................................................................. 20
Recap: Links to IB Theory ............................................................................................................................................ 25
Article: The Causes of Globalization – Garrett (2000) ................................................................................................ 26
Article: Semiglobalization and International Business Strategy – Ghemawat (2003) ................................................ 27
Article: A perspective on regional and global strategies of multinational enterprises – Rugman & Verbeke (2004) 27
Article (Friday Discussion): Getting to Sí, Ja, Oui, Hai, and Da (how to negotiate across cultures) – Meyer (2015).. 27
1
,Theme 3: Entry Modes of MNEs and FDI Motivations.................................................................................................... 29
3.4 Selection: How to select between the entry modes? ........................................................................................... 34
Article: Location and the multinational enterprise: A neglected factor? – Dunning (1998) ...................................... 36
Article: A “Strategy Tripod” Perspective on Export Behaviours: Evidence from domestic and foreign firms based in
an emerging economy – Gao, Murray, Kotabe & Lu (2010) ....................................................................................... 36
Article: The Hierarchical Model of Market Entry Modes – Pan & Tse (2000)............................................................. 37
Article: Boundaries of the firm: Insights from international entry mode research – Brouthers & Hennart (2007) ... 38
Article (Friday Discussion): How Netflix expanded to 190 countries in 7 years – Brennan (2018) ............................ 39
Theme 4: Home and Host Countries and Concepts of Distance ..................................................................................... 41
4.3 Cultural distance ................................................................................................................................................... 43
4.4 Critique of cultural distance .................................................................................................................................. 44
4.5 CAGE Model .......................................................................................................................................................... 45
4.6 (Double) Diamond Model ..................................................................................................................................... 47
Article: The Concept of Distance in International Business Research: A review and research agenda –
Hutzschenreuter, Kleindienst & Lange (2015) ............................................................................................................ 52
Article: A generalized double diamond approach to the global competitiveness of Korea and Singapore – Moon,
Rugman & Verbeke (1998) .......................................................................................................................................... 53
Article: The Business of International Business is Culture – Hofstede (1994) ............................................................ 53
Theme 5: New MNEs....................................................................................................................................................... 57
5.1 New & Emerging Types of MNEs – Intro ............................................................................................................... 57
5.2 International New Ventures and Born Globals ..................................................................................................... 57
5.3 New Theory? Emerging Market Multinationals (EMNEs) ..................................................................................... 60
Article: International Expansion of Emerging Market Enterprises – Luo & Tung (2007) ............................................ 64
2
,Article: Toward a Theory of International New Ventures – Oviatt & McDougall (2005)............................................ 66
Article: The Global Entrepreneur – Isenberg (2008) ................................................................................................... 68
, Theme 1: Core IB Theories
1.1 Core Theories
Traditionally, international business (IB) is defined as a business (or firm) that engages in international (cross-border)
economic activities.
IB is about managing complexity and uncertainty:
• Cross-border activity brings new challenges…
• …requiring awareness and strategic thinking
Core theories of international business
I. At the country level
II. At the firm level
III. At the subsidiary level (daughter company)
• Resource-based view of IB
• Institutional-based view of IB
1.2 Industry and Company Value Chains
4
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