Digitalized service multinationals and international business theory

Theory in international business

International business has existed as a distinct field of study for the past three decades, but it does not have a widely accepted explanatory theory on which to base its uniqueness as a discipline. David Ricardo's theory of comparative advantage, Raymond Vernon's product life cycle, John Dunning's eclectic theory and all others are essentially explanations of business between domestic firms or...

International Business Networks: Theory and History

One of the key features in the evolution of international business during the 20th century has been an increasing tendency for such economic activity to be co-ordinated directly through the activities of multinational firms rather than by means of market exchange. The identification of transactions costs as a barrier to the effective use of the price mechanism for co-ordinating international bu...

The Internalization Theory in International Business

Multinationals , Endogenous Growth and Technological Spillovers : Theory and Evidence

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers aspect of FDI. We also presen...

Research and International Business

This article addresses issues of relevant research by differentiating research from intelligence-gathering, by presenting classical approach to develop criteria for selecting research topic, by indicating the importance of research validity and limitations, and by taking eclectic paradigm as an example of research in international business.