The Multinational Enterprise Revisited by Buckley, Peter J. -- Read -- Imperial Library of Trantor

Index

The Multinational Enterprise Revisited

Contents List of Figures List of Tables Acknowledgements 1 The Future of the Multinational Enterprise after 30 Years

1.1 Methodology: Multilevel analysis 1.2 The nature of the multinational enterprise 1.3 The international division of labour in a global economy 1.4 Joint ventures 1.5 Communication and trust 1.6 Conclusion

References

2 The Optimal Timing of a Foreign Direct Investment

2.1 Received analysis of the optimal timing of an FDI 2.2 A simple model of the market servicing decision 2.3 An application of the simple model 2.4 Extensions of the simple model 2.5 Optimal market-servicing with set-up costs 2.6 An application: The set-up costs of transferring technology 2.7 Extensions 2.8 Conclusion

Notes References

3 A Theory of Cooperation in International Business

3.1 The concept of cooperation 3.1.1 Coordination 3.1.2 Interfirm coordination 3.2 Forbearance 3.2.1 The incentive to forbear 3.2.2 Reputation effects 3.3 Cooperation, commitment and trust 3.3.1 Reputation building 3.3.2 Commitment 3.4 The economic theory of joint ventures 3.4.1 The configuration of a JV operation 3.4.2 JV operations motivated by lack of confidence in long-term arm’s-length contracts 3.4.3 Quality uncertainty 3.4.4 Collusion 3.4.5 Hostages: Internalising the implementation of counterthreats 3.5 Building reputation and commitment 3.5.1 The international dimension 3.5.2 Networks of interlocking JVs 3.6 Conclusion

Notes References

4 Multinational Enterprises in Less Developed Countries: Cultural and Economic Interactions

4.1 Introduction 4.2 Key issues 4.3 The process of development 4.4 Geographical determinants of entrepôt potential 4.5 Scientific outlook and systems thinking 4.6 Competitive individualism versus voluntary association 4.7 Geographical and cultural aspects of a global trading system 4.8 Cultural aspects of MNE operations 4.9 Conclusion

Notes

5 Organising for Innovation: The Multinational Enterprise in the Twenty-First Century

5.1 Introduction 5.2 Increasing pressures on multinational management 5.3 Weaknesses of existing strategy literature 5.4 The process of innovation 5.5 Internalisation 5.6 Continuity of personal responsibility 5.7 Job rotation versus job evolution 5.8 World product mandates 5.9 The influence of source-country institutions on multinational performance

References

6 An Economic Model of International Joint Venture Strategy

6.1 Economic methodology 6.2 The typology of IJVs 6.3 The alternative strategies 6.4 Internalisation factors in strategic choice 6.5 The dynamics of innovation in a global economy 6.6 A formal model of IJV selection 6.7 The interaction of market size and volatility 6.8 Application of the model – IJVs in the global economy 6.9 Extensions of the model 6.10 Generalisation of the results 6.11 Conclusions

References

7 Models of the Multinational Enterprise

7.1 Introduction 7.2 Models of multinational enterprises 7.3 Methodology: Models versus frameworks 7.4 The end of the ‘golden age’ 7.5 Flexibility 7.6 External flexibility: The national competitiveness issue 7.7 Restoring competitiveness 7.8 Flexible boundaries of the firm: Networks and joint ventures 7.9 Flexibility and internal organisation 7.10 The costs of flexibility: Engineering trust 7.11 Interaction of firm flexibility and location flexibility 7.12 Flexibility and firm-specific competitive advantage 7.13 New techniques of analysis 7.14 An example 7.15 Conclusion

Notes References

8 Analysing Foreign Market Entry Strategies: Extending the Internalisation Approach

8.1 Historical development of the theory 8.1.1 Internalisation 8.1.2 Stages models of entry 8.1.3 Non-production activities 8.1.4 Mergers and acquisitions versus greenfield ventures 8.1.5 Joint ventures versus wholly owned subsidiaries 8.1.6 Cultural factors 8.1.7 Market structure and entry strategy 8.1.8 Summary 8.2 The model 8.2.1 The entrant 8.2.2 The host country rival 8.2.3 Joint ventures 8.2.4 Defining the strategy set 8.2.5 Deriving the profit equations 8.2.6 Dominance relations 8.2.7 Properties of the solution 8.2.8 Deriving the propensity to adopt a given strategy 8.3 Discussion of results 8.4 Implications for future research

Notes References

9 The Moral Basis of Global Capitalism: Beyond the Eclectic Theory

9.1 Introduction 9.2 Plan of the chapter 9.3 The protestant ethic and its decline 9.4 Modern views of human nature: An evaluation 9.5 The moral ambiguity of capitalism 9.6 Antecedents of moral decline 9.7 Globalisation of commodity trade and factor movements 9.8 Globalisation and the nation state 9.9 The globalisation of communications 9.10 Protests against global capitalism reconsidered 9.11 Conclusions

References

10 Strategic Complexity in International Business

10.1 The current challenges facing international business theory 10.2 Complexity or confusion? 10.3 Two concepts of complexity 10.4 Rational action and international business strategy 10.5 Example: Analysing foreign market entry 10.6 Collecting information 10.7 Using decision trees 10.8 Deferring decisions: Real options 10.9 Example: Optimising the dynamics of foreign market entry using research, deferment and switching strategies 10.10 Further extensions of the real options approach to strategy 10.11 The IB system as a global network 10.12 Levels of aggregation 10.13 Implementing the network research agenda 10.14 Transaction costs: Optimising ownership patterns 10.15 The distribution of information within a global system 10.16 Social networks and organisations 10.17 Conclusion References

11 Edith Penrose’s Theory of the Growth of the Firm and the Strategic Management of Multinational Enterprises

11.1 Introduction 11.2 A simple formal model of Penrose’s Theory of the Growth of the Firm 11.3 A simple multinational analogue of the Penrose model 11.4 A contrast between the Penrose model and that of Buckley and Casson 11.5 A reconciliation between the two models 11.6 The optimal speed of internationalisation 11.7 Synthesis 11.8 Conclusion Notes

References

Index