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Bounded Reality: A New Behavioral Foundation for MNE Governance

In: Transnational Corporations and Transnational Governance

Author

Listed:
  • Alain Verbeke
  • Nathan S. Greidanus

Abstract

Transaction cost economics (TCE) has fast become one of the most influential theories within the social sciences (Carroll & Teece, 1999; Carter & Hodgson, 2006). Its applications in the international business (IB) context have shown its relevance not only to explaining and predicting a wide variety of IB phenomena, including, inter alia, the existence of multinational enterprises (MNEs) (Buckley & Casson, 1976; Rugman, 1980; Teece, 1981; Hennart, 1982), MNE foreign entry mode decisions, and interactions with external parties (Beamish & Banks, 1987; Hennart, 1988; Buckley & Casson, 1998a; Chen, 2005), but also to MNE internal governance choices (Hennart, 1993; Verbeke & Kenworthy, 2008).

Suggested Citation

  • Alain Verbeke & Nathan S. Greidanus, 2015. "Bounded Reality: A New Behavioral Foundation for MNE Governance," Palgrave Macmillan Books, in: Sarianna Lundan (ed.), Transnational Corporations and Transnational Governance, chapter 3, pages 53-95, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-46769-0_3
    DOI: 10.1057/9781137467690_3
    as

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