Summary
Summary Theories Of International Business (6314M0500Y)
- Course
- Institution
All articles and class notes included
[Show more]
Seller
Follow
boovdb
Reviews received
Content preview
Theories of International BusinessSummary By Beaudine van den Berg
,Table of Contents
Theme 1: Core IB Theories 3
Rugman, Verbeke, & Nguyen (2011) - Fifty Years of International Business
Theory and Beyond 6
Buckley & Casson (2009) - The Internalization Theory of The
Multinational Enterprise: A Review of The Progress of A Research
Agenda After 30 Years 7
Peng (2001) - The Resource-based View and International Business 10
Peng (2002) - Towards an Institution-based View of Business Strategy 11
Theme 2: Global integration Processes 13
Discussion case: Meyer (2015) - Getting to si, ja, oui, hai, and da 13
Garrett (2000) - The Causes of Globalization 14
Ghemawat (2003) - Semiglobalization and International Business Strategy
17
IB for a Semi-globalized world 19
Rugman & Verbeke (2004) - A perspective on regional and global
strategies of multinational enterprises 19
Theme 3: MNE Entry Modes 21
Dunning (1998) - Location and the multinational enterprise: A neglected
factor? 21
Gao, Murray, Kotabe, and Lu (2010) - A ‘‘Strategy Tripod’’ Perspective On
Export Behaviors: Evidence From Domestic And Foreign Firms Based In
An Emerging Economy 22
Pan & Tse (2000) - The Hierarchical Model of Market Entry Modes 23
Brouthers & Hennart (2007) -Boundaries of the firm: Insights from
international entry mode research 27
Brennan (2018) - How Netflix expanded to 190 countries in 7 years 29
Theme 4: Home and Host Countries and Concepts of Distance 30
Hutzschenreuter, Kleindienst & Lange (2016) - The concept of distance in
international business research: A review and research agenda 31
Hofstede (1994) - The Business of International Business is Culture 33
Ghemawat (2001) - Distance still matters 34
Moon, Rugman, and Verbeke (1998) - A Generalized Double Diamond
Approach to the Global Competitiveness of Korea and Singapore 37
Theme 5: New MNEs 41
Oviatt and McDougall (2005) - Toward a Theory of International New
Ventures 41
Isenberg (2009) - The Global Entrepreneur: A new breed of entrepreneur
is thinking across borders – from day one 43
Luo and Tung (2007) - International Expansion of Emerging Market
Enterprises: A springboard perspective 45
,Theme 1: Core IB Theories
Conceptualizing IB
International Business
→ A business that engages in international economic activities (Either Foreign or Domestic).
→ It is about managing complexity and uncertainty:
● Cross-border activities bring new challenges
● Require awareness and strategic thinking
Vertical Integration
→ using internal exchanges rather than market transactions to carry out a business activity
● Only adds value when the transaction is frequent enough to justify integration and
● Disadvantages
○ Increases asset base and capital employed
○ Reduces flexibility & Prevents access to external expertise
○ Impossible to fully benefit from supplier efficiency and scale
○ Reduces focus on core business/ capabilities
○ Converts variable costs into fixed costs
○ Blurs evaluation/ knowledge of costs
Outsourcing
→ Turning over an organizational activity to an outside supplier that will perform it on behalf
of the local firm
● Offshore → firm abroad
● Onshore → domestic firm
● Inconstrast to FDI where you set up subsidiaries abroad and the work done is
in-house but the location is overseas
Vertical Integration vs. Outsourcing?
● Problems associated with outsourcing
● Dependence created by co-specialization or co-location
● Inadequate performance: Customization/ quality/ availability
● Dependence created by market power
● Hold up Loss of critical know-how
● Weakened commitment/ Competitive signaling
● Spillover to competition
● Declining differentiation
, Global value chain: The Smiling Curve
Value chain and the boundary of the firm - Outsourcing and the corporate value chain
Multinational Corporation (MNC)
→ A company that engages in international (cross-border) economic activities
Transnational Corporations (TCN)
→ Are incorporated or unincorporated enterprises compromising parent enterprises and their
foreign affiliates
● Parent enterprise is an enterprise that controls assets of other entities in countries
other than its home country, usually by owning a certain equity capital stake
Foreign Direct Investment (FDI)
○ An investment made to acquire lasting interest in enterprises
○ Operating outside of the economy of the investor
○ The investors purpose is to gain an effective voice in the management of the
enterprise (UNCTAD)
○ FDI is a firm level strategic decision rather than a capital market financial
decision (Dunning and rugman 1985)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller boovdb. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.20. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now