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Firm Configuration and Internationalisation: A Model

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Foreign Direct Investment, China and the World Economy

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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.

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Author information

Authors and Affiliations

  1. Centre for International Business, University of Leeds (CIBUL), UK

    Peter J. Buckley (Professor of International Business)

  2. Jerusalem School of Business Administration, The Hebrew University, Jerusalem, Israel

    Niron Hashai (Senior Lecturer in International Business and Strategic Management)

Authors
  1. Peter J. Buckley
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  2. Niron Hashai
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© 2010 Peter J. Buckley and Niron Hashai

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Buckley, P.J., Hashai, N. (2010). Firm Configuration and Internationalisation: A Model. In: Foreign Direct Investment, China and the World Economy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230248328_4

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