Abstract
This article engages in a methodological experiment by using historical evidence to challenge a common misperception about internalization theory. The theory has often been criticized for maintaining that it assumes a hierarchically organized MNE based on knowledge flowing from the home country. This is not an accurate description of how global firms operate in recent decades, but this article shows it has never been true historically. Using longitudinal data on individual firms from the nineteenth century onwards, it reveals evidence of how entrepreneurs and firms with multinational activity faced by market imperfections changed the design of their headquarters and their organizational structures.
Original language | English |
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Pages (from-to) | 1338-1358 |
Number of pages | 21 |
Journal | JOURNAL OF INTERNATIONAL BUSINESS STUDIES |
Volume | 50 |
Early online date | 11 Jun 2018 |
DOIs | |
Publication status | Published - Oct 2019 |
Bibliographical note
This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for detailsKeywords
- organization and management
- internalization theory
- business history
- entrepreneurship business strategy