The sourcing policy of a multinational firm is the result of the firm's decisions as to which of its production facilities shall service its various final markets. There is an international network linking production to markets. Critical determinants of this policy are the firm's size, industry...

The paper explores the difficulties of testing the internalization approach in the modern theory of the multinational enterprises. The structure of the theory is elaborated and the conclusion drawn that testing cannot occur at the most general theoretical level but that the theory requires...

The paper presents a simple general equilibrium model that formalizes internationalization in the eclectic paradigm based on a reconfiguration of concepts taken from the new classical economics literature. The model enables us to address simultaneously the role of ownership, location and...

Using detailed cross-section data for 1995, non-Chinese MNEs are found to generate technological and international market access spillover benefits for Chinese firms, while overseas Chinese investors confer only market access benefits. State-owned enterprises reap no benefits, and indeed receive...

Journal of International Business Studies (2003) 34, 219–222. doi:10.1057/palgrave.jibs.8400024

This paper applies the global system view to the location and control strategies of firms. This approach envisages the world as a grid of potential locations for value-adding activities, connected by flows of information and products. The simplified model provides a basis for testing new...

A new fully integrated analysis of the foreign market entry decision is presented, encompassing the choice between exporting, licensing, joint venturing and wholly owned foreign investment. The choice between acquisition and greenfield investment is examined, and so too are options based on...

The strategic choice between joint ventures, licensing agreements and mergers is analysed using eight key factors suggested by internalisation theory. The model explains the increasing role of international joint ventures in the 1980s in terms of the accelerating pace of technological innovation...