Advertisement

Analysis of Theoretical Approaches to Strategic Issues

Abstract

There are various theories relating to strategy and internationalisation of firms and numerous authors have contributed to the discussion of these issues. The author has picked three strategy approaches able to explain internationalisation of firms. First, Porter’s market-based view (1.1) which closes a gap between strategy theory and internationalisation theory by asking how firms act in global markets1. Second, the resource-based view (1.2), which considers firms as a bundle of resources and capabilities available for deployment by the firm’s business units.2 The third theory that will be explained is transaction cost theory (1.3), represented mainly by Williamson. This approach considers the transaction as base for decision making. This theory explains why firms internalise3 transactions rather than relying on the domestic market.

Keywords

Foreign Direct Investment Transaction Cost Competitive Advantage Foreign Market Market Entry 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Deutscher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden 2006

Personalised recommendations