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Book part
Publication date: 27 November 2006

Tho D. Nguyen and Nigel J. Barrett

Realizing that the Internet is a source of information and the possibility to transform it into knowledge, this study develops an IBK-Internalization process in which…

Abstract

Realizing that the Internet is a source of information and the possibility to transform it into knowledge, this study develops an IBK-Internalization process in which internationalizing firms in transition markets utilize the Internet to search for information about foreign markets, to assess its relevance, and then, to internalize it for their internationalization. It is found that IBK-Internalization underlies international orientation and foreign sales intensity, which in turn, has a reciprocal effect on IBK-Internalization. Further, learning orientation facilitates the IBK-Internalization process. These findings suggest that internationalizing firms should promote and value the IBK-Internalization process in order to mitigate their lack of foreign market knowledge.

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International Marketing Research
Type: Book
ISBN: 978-0-76231-369-3

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Book part
Publication date: 20 June 2008

Alan M. Rugman and Alain Verbeke

Internalization theory explains the existence and functioning of the multinational enterprise. It contributes to understanding the boundaries of the multinational…

Abstract

Internalization theory explains the existence and functioning of the multinational enterprise. It contributes to understanding the boundaries of the multinational enterprise, its interface with the external environment and its internal organizational design. Much work in the international strategic-management sphere has unfortunately not taken on board internalization-theory thinking and lacks the insights provided by this comparative institutional approach. In this chapter, we show how well-known international strategic-management models could be enriched and their normative implications altered by adopting an internalizing-theory lens.

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International Business Scholarship: AIB Fellows on the First 50 Years and Beyond
Type: Book
ISBN: 978-0-7623-1470-6

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Article
Publication date: 20 October 2020

Juan José Tarí, José F. Molina-Azorín, Jorge Pereira-Moliner and María D. López-Gamero

This paper examines the relationships between: (1) motives for internalization of a quality system, (2) the internalization of a quality system and (3) customer results…

Abstract

Purpose

This paper examines the relationships between: (1) motives for internalization of a quality system, (2) the internalization of a quality system and (3) customer results, employee results and social results in public organizations by means of replication research

Design/methodology/approach

First, the work applies a quantitative study to test hypotheses using structural equations based on the Partial Least Squares (PLS) approach. Then, a qualitative study is carried out to support the quantitative results obtained

Findings

Results show that internal and external motives affect internalization, and that the most important issues for internalization are commitment, communication, training, recognition and follow-up. In addition, continuous improvement is key in order to enhance customer results, employee results and social results

Originality/value

The contribution of this work is that it provides empirical support to prior research on internalization focused on manufacturing and service organizations, and extends these results to the case of public organizations

Propósito

Este trabajo analiza la relación entre: a) los motivos para interiorizar un sistema de calidad, b) la interiorización de un sistema de calidad y c) los resultados de clientes, empleados y sociedad en organizaciones públicas, a través de un estudio que replica los análisis previos sobre interiorización realizados en organizaciones manufactureras y de servicios.

Diseño/metodología/enfoque

Interiorización de la calidad en organizaciones públicasPara conseguir este objetivo se realiza primero un estudio cuantitativo para comprobar las hipótesis a través de un análisis de ecuaciones estructurales desde el enfoque Partial Least Squares (PLS). Posteriormente se realiza otro estudio cualitativo para apoyar los resultados cuantitativos obtenidos.

Resultados

Los resultados muestran que los motivos internos y externos influyen en la interiorización y que los aspectos más importantes para interiorizar un sistema de calidad son la implicación, la comunicación, la formación, el reconocimiento y el seguimiento interno. Además, la mejora continua es clave para mejorar los resultados de clientes, empleados y sociedad.

Originalidad/valor

La contribución del trabajo es que proporciona apoyo empírico a los resultados de trabajos previos sobre interiorización centrados en organizaciones manufactureras y de servicios y extiende estos resultados al caso de organizaciones públicas.

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Article
Publication date: 23 January 2019

Ana B. Escrig-Tena, Beatriz Garcia-Juan and Mercedes Segarra-Ciprés

Although the European Foundation for Quality Management (EFQM) Excellence Model has been widely adopted throughout Europe, a thorough examination of the factors that…

Abstract

Purpose

Although the European Foundation for Quality Management (EFQM) Excellence Model has been widely adopted throughout Europe, a thorough examination of the factors that contribute to the internalisation of the model (i.e. a substantive adoption) has been neglected in the literature. The purpose of this paper is to present a model that analyses the drivers of the real internalisation of the EFQM excellence model, with a focus on the role of motives for adoption, and appraisal and compensation systems.

Design/methodology/approach

An empirical study was carried out based on a sample of Spanish organisations that had been awarded EFQM recognition. Structural equation models, cluster analysis and ANOVA were used to examine the research questions.

Findings

Internal motives concerning the creation of a participative style are the main driver of internalisation. Moreover, having an appraisal system-oriented towards the development of employees helps the substantive adoption of the EFQM model. These findings reinforce the importance of the soft elements of the EFQM model.

Originality/value

This study enhances evidence about the motives for adoption and their influence on the internalisation of the EFQM model. It analyses internalisation in a novel context, EFQM recognised organisations, and contributes to the debate about the efficacy of the EFQM model to performance improvement, by unveiling the factors that could foster the internalisation of the model within the organisational routines.

Details

International Journal of Quality & Reliability Management, vol. 36 no. 3
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 15 June 2012

Alain Verbeke and Liena Kano

This paper seeks to demonstrate that internalization theory, as a “complete” theory of the firm, is particularly well equipped to analyze multinational enterprise (MNE…

Abstract

Purpose

This paper seeks to demonstrate that internalization theory, as a “complete” theory of the firm, is particularly well equipped to analyze multinational enterprise (MNE) regional strategies, thanks to its joint transaction cost economics and resource‐based foundations.

Design/methodology/approach

This paper builds on recent work by Wolf, Egelhoff, and Dunemann to show that internalization theory's predictions on MNE regional strategy are superior to those suggested by several other conceptual frameworks. For each of the 11 hypotheses formulated by Wolf and his co‐authors, an alternative is proposed here that is consistent with internalization theory predictions.

Findings

MNE regional strategy is an important empirical phenomenon. Internalization theory, as a powerful conceptual framework with general applicability, simplicity and accuracy, allows in‐depth analysis of MNE regional strategies.

Research limitations/implications

Internalization theory scholars need to find new ways of operationalizing MNE firm‐specific advantages (FSAs), as well as MNE resource recombination trajectories, to predict accurately when and how MNEs will pursue regional versus global strategies.

Practical implications

MNE senior management should rethink international expansion strategies and realize that most large MNEs actually pursue regional, not global strategies.

Social implications

Even the world's largest MNEs have great difficulty engaging in novel resource recombination across the globe, and their alleged market power should therefore not be overestimated.

Originality/value

International business scholars should embrace internalization theory as the general theory of the MNE, rather than looking for insight from theories not intended – nor properly equipped – to study strategies of the world's most complex entrepreneurial organizations.

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Article
Publication date: 10 April 2019

Juan José Tarí, Jorge Pereira-Moliner, José F. Molina-Azorín and María D. López-Gamero

This paper aims to examine the impact of external and internal drivers on the dimensions of internalization (daily practices and continuous improvement) of quality…

Abstract

Purpose

This paper aims to examine the impact of external and internal drivers on the dimensions of internalization (daily practices and continuous improvement) of quality standards, the relationship between the dimensions of internalization and their effects on customer, employee, society and organizational results in hotels.

Design/methodology/approach

The study applies a structural equations analysis to test these relationships using empirical data from 176 quality-certified hotels.

Findings

Hotels need internal drivers to internalize a quality system because the external drivers themselves are not able to explain significantly the quality internalization process. This paper shows the significant relationship between the dimensions of internalization (daily practices and continuous improvement) and the importance of continuous improvement (e.g. innovations from quality standards and reflection on how to improve the current work processes) for improved customer, employees, society and organizational results.

Originality/value

To the best of the authors’ knowledge, there are no empirical studies jointly analyzing the drivers of internalization, the relationship between the dimensions of internalization and their effects on different dimensions of results (customers, employees and society) in hotels.

Details

International Journal of Contemporary Hospitality Management, vol. 31 no. 3
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 9 September 2014

Peter J. Buckley

The purpose of this paper is to review the key analytical principles of internalisation theory as a general theory of the multinational enterprise (MNE). It illustrates…

Abstract

Purpose

The purpose of this paper is to review the key analytical principles of internalisation theory as a general theory of the multinational enterprise (MNE). It illustrates the vitality, relevance and flexibility of the approach in explaining the continued evolution of the MNE. As a grounded social science theory, it provides, in combination with history and economic geography, satisfying and novel explanations of the key phenomena of the modern globalising economy.

Design/methodology/approach

This paper examines the origins and principles of internalisation theory as the foundation theory of the MNE. It considers internalisation theory in the context of current and mainstream theories and concepts in the field of international business.

Findings

Internalisation theory is equally valid for the MNEs of yesteryear as it is for those today. The theory continues to have strong explanatory power for MNE activity. Current research areas, such as multiple embeddedness, fine-slicing of the value chain, etc., and other theories, such as dynamic capabilities and the resource-based view, either are subsets of internalisation and thus explained by the theory, or contain weakness and/or inconsistencies not found in internalisation theory.

Originality/value

This paper coherently synthesises internalisation theory, its origins and evolution. It shows how commonly held and current concepts and theories are related to internalisation theory or have weaknesses, thus making internalisation theory a superior theory to explain the MNE, and identifies potential applications of the theory to novel research areas in the field of international business.

Details

Multinational Business Review, vol. 22 no. 3
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 18 November 2013

Juan José Tarí, Iñaki Heras-Saizarbitoria and Jorge Pereira

The purpose of this paper is to analyze the internalization of quality management (QM) on the basis of quality certifiable standards – also referred to as meta-standards …

Abstract

Purpose

The purpose of this paper is to analyze the internalization of quality management (QM) on the basis of quality certifiable standards – also referred to as meta-standards – in service organizations. More specifically, the paper analyzes the case of the internalization of a quality standard in the Spanish hotel industry.

Design/methodology/approach

The paper examines the relationships between the measures of internalization, benefit, QM tools and motivation, using partial least squares in the framework of the structural equation modeling technique.

Findings

The results show that the hotels that have internalized the standard to a greater extent are more likely to be driven by internal motivation, develop more QM tools and achieve greater benefits than the hotels with a lower degree of internalization.

Originality/value

As previous studies have examined these issues in relation to the internalization of ISO standards, the present study adds to this important stream of research and contributes by advancing the understanding of these issues through the case of a specific standard for the hotel industry.

Details

Managing Service Quality, vol. 23 no. 6
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 4 November 2020

Matevz Raskovic and Katalin Takacs-Haynes

Firm internalization is a central concept within the business strategy literature, as part of the broader social sciences. The purpose of this paper is to show how and…

Abstract

Purpose

Firm internalization is a central concept within the business strategy literature, as part of the broader social sciences. The purpose of this paper is to show how and where MNE internalization theory can benefit from a social identity theory (SIT) perspective to better understand 21st-century multinational enterprises (MNEs).

Design/methodology/approach

This paper provides a review and future research agenda for the use of SIT related to MNE internalization theory. The authors complement an evolutionary review of SIT literature with a systematic bibliometric analysis identifying specific thematic gaps. Extending Buckley and Casson’s review of and future research agenda for MNE internalization theory, the authors propose three specific future research directions along with eight guiding research questions.

Findings

International business (IB) scholars are familiar with limited aspects of SIT and apply it only in certain research areas, mainly connected to human resource management and leadership, organizational identity and work-related outcomes or international marketing. Strategic management and strategy-oriented IB scholars are less familiar with SIT, despite growing interest in MNE micro-foundations and decision-making under uncertainty.

Originality/value

The authors position SIT as a natural meta-theoretical fit to MNE internalization theory. By providing a future research agenda along with eight supporting research questions, the authors help to advance the MNE internalization theory by linking individual, group and intergroup perspectives against a more socially nuanced, interactionist and dynamic view of MNEs and their decision-making.

Details

Multinational Business Review, vol. 29 no. 2
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 21 September 2015

Peter J. Buckley, OBE and Jean J. Boddewyn

The purpose of this paper is to show that the market-internalization framework can be applied to non-economic institutions because society’s non-market sub-systems …

Abstract

Purpose

The purpose of this paper is to show that the market-internalization framework can be applied to non-economic institutions because society’s non-market sub-systems – political, social and cultural – are subject to failures just like economic markets, and firms can contribute to their repair or replacement by selectively, strategically and responsibly internalizing the market and non-market arenas for these sub-systems’ functions.

Design/methodology/approach

Internalization theory is applied to a new area – that of societal failures.

Findings

Internalization theory can be applied to the joint failures of economic and non-economic institutions, and this helps explain the growing “political role” of multinational enterprises in economies in transition as well as the phenomenon of increasing multinational firm activity in underdeveloped economies.

Research limitations/implications

The limits and implications of internalization are drawn in terms of theory development, legitimacy and managerial strategies.

Originality/value

This paper is the first to analyze the selective internalization of societal failures by the multinational enterprises. It extends internalization theory and examines the contested notion of “public goods”.

Details

The Multinational Business Review, vol. 23 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

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