International Strategy
Summary by Beaudine van den Berg
, Table of Contents
Table of Contents 2
Article Overview 4
Week 1: Theoretical Foundations of International Strategy 5
Foss & Pedersen (2004) - Organizing knowledge processes in the
multinational corporation: An introduction 6
Cantwell, Dunning & Lundan (2010) - An evolutionary approach to
understanding international business activity: The co-evolution of MNEs
and the institutional environment 8
Rugman & Verbeke (1992) - A note on the transnational solution and the
transaction cost theory of multinational strategic management 10
Porter (1986) - Changing patterns of international competition 13
Ghemawat (2008) - Reconceptualizing international strategy and
organization 14
Week 2: Where do MNEs invest? 18
First 28 years they only operated in europe with close by countries after they chose to
venture overseas. But Tesco did it very different. 20
Benito & Gripsrud (1992) - The expansion of foreign direct investments:
discrete rational location choices or a cultural learning process? 24
Mariotti, Piscitello & Elia (2010) - Spatial agglomeration of multinational
enterprises: the role of information externalities and knowledge spillovers
24
Demirbag & Glaiser (2010) - Factors determining offshore location choice
for R&D projects: A comparative study for developed and emerging
regions 24
Laamanen, Simula & Torstila (2012) - Cross-border relocations of
headquarters in Europe 24
Week 3: How do MNEs invest abroad? 25
Brouthers & Hennart (2007) - Boundaries of the firm: Insights from
international entry mode research 35
Meyer, Estrin, Bhaumik & Peng (2009) - Institutions, resources, and entry
strategies in emerging economies 35
Kogut (1991) - Joint ventures and the option to expand and acquire 35
Gubbi, Aulakh, Ray, Sarkar & Chittoor (2010) - Do international
acquisitions by emerging-economy firms create shareholder value? The
case of Indian firms 35
Week 4: When do MNEs invest abroad? 36
Lieberman & Montgomery (1988) - First mover advantages. 41
Kerin, Varadarajan & Peterson (1992) - First-mover Advantage: A
Synthesis, Conceptual Framework, and Research Propositions 41
Gaba, Pan & Ungson (2002) - Timing of entry in international market: An
empirical study of US Fortune 500 firms in China 41
, Frynas, Mellahi & Pigman (2006) - First mover advantages in international
business and firm-specific political resources 41
Week 5: How do MNEs manage foreign subsidiaries? 42
Knowledge networks 45
Birkinshaw, Hood & Jonsson (1998) - Building Firm-Specific Advantages
in Multinational Corporations: The Role of Subsidiary Initiative 49
Harzing (2001) - Of bears, bumble-bees, and spiders: the role of
expatriates in controlling foreign subsidiaries 49
Minbaeva, Pedersen, Blörkman, Gey & Park (2003) - MNC knowledge
transfer, subsidiary absorptive capacity, and HRM 49
Mudambi & Navarra (2004) - Is knowledge power? Knowledge flows,
subsidiary power and rent- seeking within MNCs 49
Caligiuri, De Cieri, Minbaeva, Verbeke & Zimmerman (2020) -
International HRM insights for navigating the COVID-19 pandemic:
Implications for future research and practice 49
Week 6: Multinationality and Performance 50
Lu & Beamish (2004) - International Diversification and Firm Performance:
The S-Curve Hypothesis 51
Vermeulen & Barkema (2002) - Pace, rhythm, and scope: Process
dependence in building a profitable multinational corporation 51
Chang & Rhee (2011) - Rapid FDI expansion and firm performance 51
Hennart (2007) - The Theoretical Rationale for a
Multinationality-Performance Relationship 51
Cases Discussed 52
, Article Overview
Week 1 - Theoretical Foundations of International Strategy
Rugman & Verbeke Extending on the transaction cost theory they created A
(1992) Transnational solution which is a firm that builds its
competitive advantage upon a
mix of LB & NLB FSAs. It
makes a dual use of CSAs in
the home and host country. 2
criteria: Strategic importance
of local environment and the
level of internal resources and
capabilities
Foss & Pedersen (2004) This paper focuses on knowledge and supports the idea that
when studying MNCs it is key to focus on knowledge. It must
be combined with a view of organizational mechanisms as
instruments of influencing the sourcing, building, deployment
and transfer of knowledge resources.
Cantwell, Dunning & Provides an overview of what institutions mean, what they
Lundan (2010) are, and why they are so important in discussing
international business.
Porter (1986) A firm may standardize (concentrate) some activities, and
tailor (disperse) others. It may also do both by coordinating
dispersed activities.
Ghemawat (2008) Ghemawat developed the AAA strategies for dealing with
differences.
Adaptation → Local responsiveness
Aggregation → Make use of economies of scale and scope
Arbitrage → Absolute
specialization
Summary by Beaudine van den Berg
, Table of Contents
Table of Contents 2
Article Overview 4
Week 1: Theoretical Foundations of International Strategy 5
Foss & Pedersen (2004) - Organizing knowledge processes in the
multinational corporation: An introduction 6
Cantwell, Dunning & Lundan (2010) - An evolutionary approach to
understanding international business activity: The co-evolution of MNEs
and the institutional environment 8
Rugman & Verbeke (1992) - A note on the transnational solution and the
transaction cost theory of multinational strategic management 10
Porter (1986) - Changing patterns of international competition 13
Ghemawat (2008) - Reconceptualizing international strategy and
organization 14
Week 2: Where do MNEs invest? 18
First 28 years they only operated in europe with close by countries after they chose to
venture overseas. But Tesco did it very different. 20
Benito & Gripsrud (1992) - The expansion of foreign direct investments:
discrete rational location choices or a cultural learning process? 24
Mariotti, Piscitello & Elia (2010) - Spatial agglomeration of multinational
enterprises: the role of information externalities and knowledge spillovers
24
Demirbag & Glaiser (2010) - Factors determining offshore location choice
for R&D projects: A comparative study for developed and emerging
regions 24
Laamanen, Simula & Torstila (2012) - Cross-border relocations of
headquarters in Europe 24
Week 3: How do MNEs invest abroad? 25
Brouthers & Hennart (2007) - Boundaries of the firm: Insights from
international entry mode research 35
Meyer, Estrin, Bhaumik & Peng (2009) - Institutions, resources, and entry
strategies in emerging economies 35
Kogut (1991) - Joint ventures and the option to expand and acquire 35
Gubbi, Aulakh, Ray, Sarkar & Chittoor (2010) - Do international
acquisitions by emerging-economy firms create shareholder value? The
case of Indian firms 35
Week 4: When do MNEs invest abroad? 36
Lieberman & Montgomery (1988) - First mover advantages. 41
Kerin, Varadarajan & Peterson (1992) - First-mover Advantage: A
Synthesis, Conceptual Framework, and Research Propositions 41
Gaba, Pan & Ungson (2002) - Timing of entry in international market: An
empirical study of US Fortune 500 firms in China 41
, Frynas, Mellahi & Pigman (2006) - First mover advantages in international
business and firm-specific political resources 41
Week 5: How do MNEs manage foreign subsidiaries? 42
Knowledge networks 45
Birkinshaw, Hood & Jonsson (1998) - Building Firm-Specific Advantages
in Multinational Corporations: The Role of Subsidiary Initiative 49
Harzing (2001) - Of bears, bumble-bees, and spiders: the role of
expatriates in controlling foreign subsidiaries 49
Minbaeva, Pedersen, Blörkman, Gey & Park (2003) - MNC knowledge
transfer, subsidiary absorptive capacity, and HRM 49
Mudambi & Navarra (2004) - Is knowledge power? Knowledge flows,
subsidiary power and rent- seeking within MNCs 49
Caligiuri, De Cieri, Minbaeva, Verbeke & Zimmerman (2020) -
International HRM insights for navigating the COVID-19 pandemic:
Implications for future research and practice 49
Week 6: Multinationality and Performance 50
Lu & Beamish (2004) - International Diversification and Firm Performance:
The S-Curve Hypothesis 51
Vermeulen & Barkema (2002) - Pace, rhythm, and scope: Process
dependence in building a profitable multinational corporation 51
Chang & Rhee (2011) - Rapid FDI expansion and firm performance 51
Hennart (2007) - The Theoretical Rationale for a
Multinationality-Performance Relationship 51
Cases Discussed 52
, Article Overview
Week 1 - Theoretical Foundations of International Strategy
Rugman & Verbeke Extending on the transaction cost theory they created A
(1992) Transnational solution which is a firm that builds its
competitive advantage upon a
mix of LB & NLB FSAs. It
makes a dual use of CSAs in
the home and host country. 2
criteria: Strategic importance
of local environment and the
level of internal resources and
capabilities
Foss & Pedersen (2004) This paper focuses on knowledge and supports the idea that
when studying MNCs it is key to focus on knowledge. It must
be combined with a view of organizational mechanisms as
instruments of influencing the sourcing, building, deployment
and transfer of knowledge resources.
Cantwell, Dunning & Provides an overview of what institutions mean, what they
Lundan (2010) are, and why they are so important in discussing
international business.
Porter (1986) A firm may standardize (concentrate) some activities, and
tailor (disperse) others. It may also do both by coordinating
dispersed activities.
Ghemawat (2008) Ghemawat developed the AAA strategies for dealing with
differences.
Adaptation → Local responsiveness
Aggregation → Make use of economies of scale and scope
Arbitrage → Absolute
specialization
