Factors influencing the Internationalisation of Firms: Micro Foundations of Macro Determinants
AbstractWe draw on insights from the theory of the multinational enterprise (MNE) to explain outward investment and (thus) internationalisation. We claim that micro insights from the work of Stephen Hymer, Edith Penrose and other extant theories of the MNE can serve as micro foundations of some macro determinants of internationalisation. The focus on macro determinants pursues and develops an earlier critique of the theory of the MNE by Penrose; that it fails to distinguish between intra-national and inter-national expansion of firms. We propose demand-side national business cycle considerations as a Penrose-inspired answer to the Penrosean critique. Our evidence derives from USA and UK data, supports insights from Hymer, Vernon, Penrose and our response to the Penrosean challenge.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number DYNREG36.
Length: 29 pages
Date of creation: 2009
Date of revision:
Hymer; Penrose; Business Cycle; Outward Investment;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-30 (All new papers)
- NEP-CSE-2009-08-30 (Economics of Strategic Management)
- NEP-MKT-2009-08-30 (Marketing)
- NEP-SBM-2009-08-30 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pitelis, Christos N., 2004. "Edith Penrose and the resource-based view of (international) business strategy," International Business Review, Elsevier, vol. 13(4), pages 523-532, August.
- Pesaran, M. H. & Shin, Y. & Smith, R. J., 1996. "Testing for the 'Existence of a Long-run Relationship'," Cambridge Working Papers in Economics 9622, Faculty of Economics, University of Cambridge.
- repec:fth:inseep:9645 is not listed on IDEAS
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
- Charles P. Kindleberger, 2002. "Stephen Hymer and the Multinational Corporation," Contributions to Political Economy, Oxford University Press, vol. 21(1), pages 5-7, December.
- Pitelis, Christos, 1996. "Effective Demand, Outward Investment and the (Theory of the) Transnational Corporation: An Empirical Investigation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(2), pages 192-206, May.
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