Abstract
This paper reviews the progress of the research agenda initiated by The Future of the Multinational Enterprise (1976). Focusing initially on the problem of explaining the existence of the multinational enterprise, the agenda soon broadened to encompass the analysis of alternative modes of foreign market entry, the role of international joint ventures, the impact of innovation on corporate growth, and the role of culture in international business. The core philosophy – based on the Coasian nature of the firm and on rational action modelling – has remained constant, while the widening range of applications has encouraged synthesis with theories developed in other fields of research. Success in answering any one question invariably generates new questions, which must in turn be answered through a further extension of the theory, and this dynamic continues to drive the development of the theory today. Internalisation theory has retained its validity and its vitality over the past 30 years, and is currently being extended into new fields of international business research.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Aliber, R. Z. 1970. A theory of foreign direct investment. In C. P. Kindleberger (Ed.), The international corporation, 17–34, Cambridge, MA: MIT Press.
Aliber, R. Z. 1971. The multinational enterprise in a multiple currency world. In J. H. Dunning (Ed.), The multinational enterprise, 49–56, London: George Allen & Unwin.
Bain, J. S. 1956. Barriers to new competition. Cambridge, MA: Harvard University Press.
Buckley, P. J. 2002. Is the international business research agenda running out of steam? Journal of International Business Studies, 33 (2): 365–373.
Buckley, P. J. 2006. Stephen Hymer: Three phases, one approach? International Business Review, 5 (2): 140–147.
Buckley, P. J. 2007. The strategy of multinational enterprises in the light of the rise of China. Scandinavian Journal of Management, 23 (2): 107–126.
Buckley, P. J., & Casson, M. C. 1976. The future of the multinational enterprise. London: Macmillan.
Buckley, P. J., & Casson, M. C. 1981. The optimal timing of a foreign direct investment. The Economic Journal, 91 (361): 75–87.
Buckley, P. J., & Casson, M. C. 1985. The economic theory of the multinational enterprise. London; New York: Macmillan; St Martin's Press.
Buckley, P. J., & Casson, M. C. 1988. A theory of cooperation in international business. In F. J. Contractor & P. Lorange (Eds), Cooperative strategies in international business: 31–53. Lexington, MA: Lexington Books.
Buckley, P. J., & Casson, M. C. 1991. Multinational enterprises in less developed countries: Cultural and economic interactions. In P. J. Buckley & J. Clegg (Eds), Multinational enterprises in less developed countries, 27–55, London: Macmillan.
Buckley, P. J., & Casson, M. C. 1992. Organising for innovation: The multinational enterprise in the twenty-first century. In P. J. Buckley & M. C. Casson (Eds), Multinational enterprises in the world economy: Essays in honour of John Dunning, 212–232, Aldershot: Edward Elgar.
Buckley, P. J., & Casson, M. C. 1996. An economic model of international joint venture strategy. Journal of International Business Studies, 27 (5): 849–876.
Buckley, P. J., & Casson, M. C. 1998a. Models of the multinational enterprise. Journal of International Business Studies, 29 (1): 21–44.
Buckley, P. J., & Casson, M. C. 1998b. Analyzing foreign market entry strategies: Extending the internalization approach. Journal of International Business Studies, 29 (3): 539–561.
Buckley, P. J., & Casson, M. C. 2001a. The moral basis of global capitalism: Beyond the eclectic theory. International Journal of the Economics of Business, 8 (2): 303–327.
Buckley, P. J., & Casson, M. C. 2001b. Strategic complexity in international business. In A. M. Rugman & T. L. Brewer (Eds), The Oxford handbook of international business: 90–124. Oxford: Oxford University Press.
Buckley, P. J., & Casson, M. C. 2003. The future of the multinational enterprise in retrospect and in prospect. Journal of International Business Studies, 34 (2): 219–222.
Buckley, P. J., & Casson, M. C. 2007. Edith Penrose's theory of the growth of the firm and the strategic management of multinational enterprises. Management International Review, 47 (2): 151–173.
Buckley, P. J., Casson, M. C., & Gulamhussen, M. A. 2002. Internationalisation: Real options, knowledge management and the Uppsala approach. In V. Havila, M. Forsgen, & H. Hakansson (Eds), Critical perspectives on internationalisation, 229–261, Oxford: Elsevier Science.
Casson, M. 1991. The economics of business culture. Oxford: Oxford University Press.
Casson, M. 2000. Enterprise and leadership: Studies on firms, networks and institutions. Cheltenham: Edward Elgar.
Caves, R. E. 1971. International corporations: The industrial economics of foreign investment. Economica, 38 (149): 1–27.
Chamberlin, E. H. 1927. The theory of monopolistic competition. Cambridge, MA: Harvard University Press.
Cheung, S. N. S. 1983. The contractual nature of the firm. Journal of Law and Economics, 26 (1): 1–26.
Coase, R. H. 1937. The nature of the firm. Economica, 4 (16): 386–405.
Davis, M. S. 1971. That's interesting! Towards a phenomenology of sociology and a sociology of phenomenology. Philosophy of Social Science, 1: 309–344.
Dunning, J. H. (Ed.). 1974. Economic analysis and the multinational enterprise. London: George Allen & Unwin.
Dunning, J. H. 1977. Trade, location of economic activity and the MNEs. In B. Ohlin, P. Hesselborn, & P. Wijkman (Eds), The international allocation of economic activity, 395–418, London: Macmillan.
Hennart, J. F. 1982. A theory of multinational enterprise. Ann Arbour University of Michigan Press.
Herman, A. 2001. The Scottish enlightenment. London: Fourth Estate.
Huntington, S. P. 1997. The clash of civilization and the remaking of world order. London: Simon and Schuster.
Hymer, S. 1976. The international operations of national firms: A study of direct investment. Cambridge, MA: MIT Press.
Kindleberger, C. P. 1969. American business abroad. New Haven, CT: Yale University Press.
Magee, S. P. 1977. Multinational corporations, industry technology cycle and development. Journal of World Trade Law, 11: 297–321.
McManus, J. C. 1972. The theory of the multinational firm. In G. Paquet (Ed.), The multinational firm and the nation state, 167–182, Toronto: Collier Macmillan.
Robinson, J. V. 1934. Economics of imperfect competition. London: Macmillan.
Scherer, F. M. 1975. The economics of multi-plant operation. Cambridge, MA: Harvard University Press.
Smith, A. 1776. An inquiry into the nature and causes of the wealth of nations. Oxford: Clarendon Press.
Swedenborg, B. 1979. Multinational operations of Swedish firms. Stockholm: Almquist & Wiskell.
Vernon, R. 1966. International investment and international trade in the product cycle. Quarterly Journal of Economics, 80 (2): 190–207.
Williamson, O. E. 1975. Markets and hierarchies: Analysis and anti-trust implications. New York: Free Press.
Acknowledgements
We would like to thank Alain Verbeke and three anonymous referees for their insightful comments on earlier versions.
Author information
Authors and Affiliations
Additional information
This article was single-blind reviewed. Accepted by Alain Verbeke, Area Editor, 8 April 2009. This paper has been with the authors for two revisions.
Rights and permissions
About this article
Cite this article
Buckley, P., Casson, M. The internalisation theory of the multinational enterprise: A review of the progress of a research agenda after 30 years. J Int Bus Stud 40, 1563–1580 (2009). https://doi.org/10.1057/jibs.2009.49
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/jibs.2009.49