Quasi-internalization, recombination advantages, and global value chains: Clarifying the role of ownership and control

In responding to the Forsgren and Holm (2021) critique of internalization theory, we develop a capability-based model quasi-internalization, highlighting key role international recombination assets. With external control mechanisms becoming more sophisticated, full has become increasingly unnecessary. Rather, capacity orchestrate complex networks is an important source competitive advantage. We demonstrate that theory does not need assume MNE all powerful, or it can dictate choice mode with its foreign business partners. also disagree argument presumes perfect rationality. When managers’ perceptions deviate from reality, they do indeed make wrong choices (over- under-internalization) come various types efficiency penalties. share view learning perspective provide insights on evolution MNE’s asset mode, as gains experience knowledge. Furthermore, show been extended incorporate such perspective.