Internalization Theory and the Governance of the Global Factory

Abstract

Originality/value

We explicitly link internalization theory with the global factory paradigm and explore unresolved issues in the relevant literature. Internalization theory prescribes the optimal ownership status and location for each economic activity considered. The theory focuses on the bundling of firm-level resources and complementary ones held by external parties, for each fine-sliced economic activity. It also considers explicitly the nature of the linkages among these activities.

Citation

Hillemann, J. and Verbeke, A. (2014), "Internalization Theory and the Governance of the Global Factory", Multinational Enterprises, Markets and Institutional Diversity (Progress in International Business Research, Vol. 9), Emerald Group Publishing Limited, pp. 27-48. https://doi.org/10.1108/S1745-886220140000009001

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