The influence of “managing across borders” on the field of international management

Abstract

Publisher Summary This chapter discusses the influence of managing across borders on the field of international management. Internalization advantages fundamentally depend upon the firm's organizational capabilities to operate foreign subsidiaries irrespective of the existence of natural and government imposed market imperfections. For example, the difficulties associated with the transfer of technology or with organizational learning may be different for two firms in a single industry. There are not separate fields of international management and international business, as both share the multinational enterprise (MNE) as the unit of analysis. Internalization theorists do not believe only in centralized structures, and organization theorists need to take on board relevant aspects of transaction cost thinking. The managerial relevance of their research has set new standards for scholars in strategy and international business. Bartlett and Ghoshal raised the bar for research, to the mutual benefit of scholars, students and managers.