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Firm Configuration and Internationalisation: A Model

In: Foreign Direct Investment, China and the World Economy

Author

Listed:
  • Peter J. Buckley

    (University of Leeds (CIBUL))

  • Niron Hashai

    (The Hebrew University)

Abstract

The ‘economic school’ of thought has been tremendously influential in International Business (IB) research. Scholars adhering to this school (e.g., Anderson and Gatignon, 1986; Buckley and Casson, 1976; Dunning, 1977, 1988; Hennart, 1993; Hirsch, 1976; Rugman, 1981, 1986) focus on the advantages gained from internalising the firm’s foreign activities during its international expansion. Internalisation enables the firm to minimise the cost of economic transactions by better exploiting underutilised firm-specific capabilities (e.g., managerial skills and technology), which are superior to those of indigenous competitors.

Suggested Citation

  • Peter J. Buckley & Niron Hashai, 2010. "Firm Configuration and Internationalisation: A Model," Palgrave Macmillan Books, in: Foreign Direct Investment, China and the World Economy, chapter 4, pages 25-52, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24832-8_4
    DOI: 10.1057/9780230248328_4
    as

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