Footloose Multinationals: Extending Internalisation Theory

Date

2021

Advisors

Journal Title

Journal ISSN

ISSN

Volume Title

Publisher

Wiley

Type

Article

Peer reviewed

Yes

Abstract

Internalization theory explains how the multinational enterprise (MNE) makes decisions on new investments but does not explicitly address the restructuring (i.e. unbundling) processes that can take place within the MNE network of subsidiaries. Further extensions to internalization theory have considered the ways MNEs recombine, bundle, unbundle and orchestrate resources but have yet to address specifically the issue of divestments and relocations. We contribute to the literature by extending internalization theory through conceptualising footloose behavior, a repeated relocation of divested operations over a period of time, and approaching MNEs behavior in a holistic way. Empirically, we use four case studies of mature, complex and diversified MNEs within the context of European Union (EU). These MNEs have engaged in several investments, divestments and relocations over several years. Through the analysis of their behavior we demonstrate how the inclusion of divestments and relocations can extend internalization theory in explaining the modern MNE.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

Internalization Theory, International Business Theory, European Union, Construct Development and Evaluation, Evaluation of Current Theories, Integration of Pre-Existing Theoretical Approaches

Citation

Gokh, I. and Filippaios, F. (2021) Footloose Multinationals: Extending Internalisation Theory. Thunderbird International Business Review

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)