A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management View Full Text


Ontology type: schema:ScholarlyArticle     


Article Info

DATE

1992-12

AUTHORS

Alan M. Rugman, Alain Verbeke

ABSTRACT

This article assesses the extent to which the results of Bartlett and Ghoshal's [1989] work can be incorporated in what has now become one of the core explanations of multinational strategic management, i.e., the transaction cost-based theory of international production. We demonstrate that the transaction cost approach fully incorporates the empirical findings of Bartlett and Ghoshal's work. To do so requires that we make a new distinction between location-bound and non-location-bound firm-specific advantages. In addition, three possible uses of country-specific advantages by multinational enterprises need to be identified. While the transnational solution, as proposed by Bartlett and Ghoshal, is not itself a new theory of multinational strategic management, it is compatible with the transaction cost-based model of multinational strategic management. More... »

PAGES

761-771

Identifiers

URI

http://scigraph.springernature.com/pub.10.1057/palgrave.jibs.8490287

DOI

http://dx.doi.org/10.1057/palgrave.jibs.8490287

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1009878277


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