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This paper proposes a new typology of Ownership (O) advantages as a function of their differential managerial implications in established multinational enterprises (MNEs). We argue that the mainstream typology of O advantages proposed in Dunning’s eclectic paradigm does not recognize the uniqueness of individual firms. We therefore propose a new typology of O advantages, which distinguishes among four types, based on the geographic source of such advantages and their transferability across borders. Moreover, we acknowledge the importance of resource recombination advantages. Two case examples illustrate the implications of the new typology for established MNEs.

Alain Verbeke is professor of international business strategy and holds the McCaig Research Chair in management at the Haskayne School of Business, University of Calgary. He was previously the director of the MBA programme, Solvay Business School, University of Brussels. He has also been visiting professor at Dalhousie University, the University of Toronto and the Université Catholique de Louvain, as well as an associate fellow of Templeton College (University of Oxford). He is presently academic associate of the Centre for International Business and Management, Judge Business School, University of Cambridge.

This chapter complements the one that appeared as “History of the AIB Fellows: 1975–2008” in Volume 14 of this series (International Business Scholarship: AIB Fellows on the First 50 Years and Beyond, Jean J. Boddewyn, Editor). It traces what happened under the deanship of Alan Rugman (2011–2014) who took many initiatives reported here while his death in July 2014 generated trenchant, funny, and loving comments from more than half of the AIB Fellows. The lives and contributions of many other major international business scholars who passed away from 2008 to 2014 are also evoked here: Endel Kolde, Lee Nehrt, Howard Perlmutter, Stefan Robock, John Ryans, Vern Terpstra, and Daniel Van Den Bulcke.

The capital budgeting decision for a multinational enterprise needs to take into account concepts of business policy and competitive strategy. From the modern theory of the multinational enterprise, i.e., the theory of internalisation, it is recognised that proprietary firm specific advantages yield economic rents when exploited on a world‐wide basis. Yet the multinational enterprise finds these potential rents dissipated by internal governance costs of its organisational structure and the difficulty of timing and sustaining its foreign direct investment activities. This paper examines these issues by a focus upon parent‐subsidiary relationships and the strategic nature of the capital budgeting decision for a multinational enterprise.

The Booz & Co./strategy+business Eminent Scholar in International Management is an annual award given by the International Management Division of the Academy of Management and Sponsored by Booz & Co./strategy+business.

The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country.

This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada.

This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain.

We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.

This research volume honours Alan M. Rugman, who is the L. Leslie Waters Chair in International Business (IB), Professor of Management and Professor of Business Economics and Public Policy at the Kelley School of Business, Indiana University. The work contains a set of essays developed to celebrate the Academy of Management's (AoM) recognition of Professor Rugman as the ‘Booz Allen Hamilton Strategy and Business Eminent Scholar in International Management’ at the AoM 2004 Annual Meeting in New Orleans, Louisiana. Booz Allen Hamilton established this award to recognize eminent scholars whose research and writing have contributed significantly to international management scholarship and whose work has had an effect on the practice of international management. This great honour was not the only one Professor Rugman received in 2004. The European International Business Academy (EIBA) organized a special panel honouring Professor Rugman's 25-year old landmark study on international diversification and the multinational enterprise (MNE) at its 2004 Annual Meeting in Ljubljana, Slovenia. The 10 chapters included in this volume were presented at one of these events or written as a direct result thereof.