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Knowledge transfer considerations and the future of the internalization hypothesis

  • Hashai, Niron
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    The paper demonstrates how the scope of the internalization hypothesis can be extended by an explicit consideration of knowledge transfer costs and requirements. The paper outlines three important routes for advancing the internalization hypothesis: one is by adding a dynamic dimension to the internalization decision, the other is by adding more complexity to internalization decisions and the third is by taking a global system view rather than the traditional single firm view. The paper finally calls for a dynamic modeling of the complexities in knowledge transfer costs within a global competitive setting as a way to further advance the scope of the internalization hypothesis.

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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 18 (2009)
    Issue (Month): 3 (June)
    Pages: 257-264

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    Handle: RePEc:eee:iburev:v:18:y:2009:i:3:p:257-264
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    1. Shih-Fen S Chen, 2005. "Extending internalization theory: a new perspective on international technology transfer and its generalization," Journal of International Business Studies, Palgrave Macmillan, vol. 36(2), pages 231-245, March.
    2. Nicole Adler & Niron Hashai, 2007. "Knowledge flows and the modelling of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 38(4), pages 639-657, July.
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    6. Bernard L Simonin, 1999. "Transfer of Marketing Know-How in International Strategic Alliances: An Empirical Investigation of the Role and Antecedents of Knowledge Ambiguity," Journal of International Business Studies, Palgrave Macmillan, vol. 30(3), pages 463-490, September.
    7. Peter J Buckley & Niron Hashai, 2004. "A global system view of firm boundaries," Journal of International Business Studies, Palgrave Macmillan, vol. 35(1), pages 33-45, January.
    8. Buckley, Peter J., 2007. "The strategy of multinational enterprises in the light of the rise of China," Scandinavian Journal of Management, Elsevier, vol. 23(2), pages 107-126, June.
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    13. Buckley, Peter J., 2009. "The impact of the global factory on economic development," Journal of World Business, Elsevier, vol. 44(2), pages 131-143, April.
    14. Peter J Buckley & Martin J Carter, 2004. "A formal analysis of knowledge combination in multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 371-384, September.
    15. Buckley, Peter J. & Hashai, Niron, 2005. "Firm configuration and internationalisation: A model," International Business Review, Elsevier, vol. 14(6), pages 655-675, December.
    16. Seev Hirsch, 1989. "Services and service intensity in international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 125(1), pages 45-60, March.
    17. Rugman, Alan M, 1986. "New Theories of the Multinational Enterprise: An Assessment of Internalization Theory," Bulletin of Economic Research, Wiley Blackwell, vol. 38(2), pages 101-18, May.
    18. Buckley, Peter J & Casson, Mark, 1981. "The Optimal Timing of a Foreign Direct Investment," Economic Journal, Royal Economic Society, vol. 91(361), pages 75-87, March.
    19. X Martin & R Salomon, 2003. "Knowledge transfer capacity and its implications for the theory of the multinational corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 34(4), pages 356-373, July.
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