Journal of the Academy of Marketing Science

, Volume 39, Issue 4, pp 492–508 | Cite as

Marketing and the multinational: extending internalisation theory

  • Peter J. Buckley
  • Mark Casson


Introducing marketing explicitly into the internalisation theory of the multinational enterprise considerably extends the power of the theory. In particular, it enables a comparison of marketing-led and technology-led multinationals and highlights the benefits of collaboration between them. It facilitates the analysis of outsourcing, and in particular of R&D. It highlights the importance to marketing-led firms of owning product rather than facilities. The analysis addresses key issues relating to “hollow firms”, “flagship firms” and the “global factory”.


Marketing Multinational Internalisation Entrepreneurship Systems Knowledge 



We are grateful to Tomas Hult and four anonymous referees for helpful comments on how to improve this paper. We are also grateful to the two Janets for help with the presentation of the paper.


  1. Achrol, R. (1991). Evolution of the marketing organization: new forms for turbulent environments. Journal of Marketing, 55, 77–93.CrossRefGoogle Scholar
  2. Allen, R. C. (2009). The British industrial revolution in global perspective. Cambridge: Cambridge University Press.Google Scholar
  3. Andersen, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working relationships. Journal of Marketing, 54, 42–58.CrossRefGoogle Scholar
  4. Andreau, J. (1999). Banking and business in the Roman world. Cambridge: Cambridge University Press.Google Scholar
  5. Bailyn, B. (1955). The New England merchants in the seventeenth century. Cambridge: Harvard University Press.Google Scholar
  6. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 469–481.Google Scholar
  7. Buckley, P. J. (2002). International business versus international marketing. International Marketing Review, 19, 16–20.CrossRefGoogle Scholar
  8. Buckley, P. J. (2007). The strategy of multinational enterprises in the light of the rise of China. Scandinavian Journal of Management, 23, 107–126.CrossRefGoogle Scholar
  9. Buckley, P. J., & Casson, M. (1976). The future of the multinational enterprise. London: Macmillan.Google Scholar
  10. Buckley, P. J., & Casson, M. (1988). A theory of cooperation in international business. In F. Contractor & P. Lorange (Eds.), Cooperative strategies in international business. Lexington: Lexington Books, D C Heath & Co.Google Scholar
  11. Buckley, P. J., & Casson, M. (1993). Economics as an imperialist social science. Human Relations, 46, 1035–52.CrossRefGoogle Scholar
  12. Buckley, P. J., & Casson, M. (1998a). Models of the multinational enterprise. Journal of International Business Studies, 29, 21–44.CrossRefGoogle Scholar
  13. Buckley, P. J., & Casson, M. (1998b). Analysing foreign market entry strategies: extending the internalisation approach. Journal of International Business Studies, 29, 539–61.CrossRefGoogle Scholar
  14. Buckley, P. J., & Hashai, N. (2004). A global system view of firm boundaries. Journal of International Business Studies, 35, 33–45.CrossRefGoogle Scholar
  15. Buckley, P. J., Chapman, M., Clegg, J., & Gajewska-De Mattos, H. (2008). Close neighbours and distant friends—perceptions of cultural distance. International Business Review, 17, 217–234.CrossRefGoogle Scholar
  16. Casson, M. (1985). Multinationals and intermediate product trade. In P. J. Buckley & M. Casson (Eds.), The economic analysis of the multinational enterprise (pp. 144–171). London: Macmillan.Google Scholar
  17. Coase, R. H. (1937). The nature of the firm. Economica, 4, 386–405.CrossRefGoogle Scholar
  18. Cooper, M. C., & Ellram, L. M. (1993). Characteristics of supply chain management and the implication for purchasing and logistics strategy. International Journal of Logistics Management, 4, 13–24.CrossRefGoogle Scholar
  19. Da Silva Lopes, T., & Casson, M. (2007). Entrepreneurship and the development of global brands. Business History Review, 81, 651–680.CrossRefGoogle Scholar
  20. Dunning, J. H. (1977). Trade, location of economic activity and the multinational enterprise. In B. Ohlin, P. Hesselborn, & P. Wijkman (Eds.), The international allocation of economic activity (pp. 395–418). London: Macmillan.Google Scholar
  21. Dwyer, F. R., & Welsh, M. A. (1985). Environmental relationships of the internal political economy of marketing channels. Journal of Marketing Research, 22, 397–414.CrossRefGoogle Scholar
  22. Forsgren, M. (2007). A multifarious creature—six tales of the multinational firm. Uppsala: Uppsala University Press.Google Scholar
  23. Foss, N. J. (1997). Resources, firms and strategies. Oxford: Oxford University Press.Google Scholar
  24. Fugate, B., Sahin, F., & Mentzer, J. T. (2006). Supply chain management coordination mechanisms. Journal of Business Logistics, 27, 129–162.CrossRefGoogle Scholar
  25. Gregory, D. (1982). Regional transformation and industrial revolution: a geography of the Yorkshire Woollen industry. Minneapolis: University of Minnesota Press.Google Scholar
  26. Hennart, J. F. (1988). A transaction cost theory of equity joint ventures. Strategic Management Journal, 9, 361–374.CrossRefGoogle Scholar
  27. Hinterhuber, A. (2002). Value chain orchestration in action and the case of the global agrochemical industry. Long Range Planning, 35, 615–635.CrossRefGoogle Scholar
  28. Hult, G. T. M. (2003). A research agenda for the nexus of product development and supply chain management processes. Journal of Product Innovation Management, 20, 427–428.CrossRefGoogle Scholar
  29. Johanson, J., & Vahlne, J.-E. (1977). The internationalisation process of the firm: a model of knowledge development and increasing foreign commitments. Journal of International Business Studies, 10, 23–32.CrossRefGoogle Scholar
  30. Johanson, J., & Vahlne, J.-E. (2010). Markets as networks: implications for strategy-making. Journal of the Academy of Marketing Science. doi: 10.1007/s11747-010-235-0.Google Scholar
  31. Klein, S. (1989). A transaction cost explanation of vertical control in international markets. Journal of the Academy of Marketing Science, 17, 253–260.CrossRefGoogle Scholar
  32. Kotabe, M., & Mol, M. J. (Eds.). (2006). Global supply chain management (2 volumes). Cheltenham: Edward Elgar.Google Scholar
  33. Krugman, P. R. (1991). Geography and trade. Cambridge: MIT.Google Scholar
  34. Little, E. W. (1970). The marketing channel: who should lead this extra-corporate organization? Journal of Marketing, 34, 31–38.CrossRefGoogle Scholar
  35. Macneil, I. R. (1978). Contracts: Adjustment of long-term economic relations under classical, neoclassical and relational contract law. Northwestern University Law Review, 72, 854–906.Google Scholar
  36. Markusen, J. R. (2002). Multinational firms and the theory of international trade. Cambridge: MIT.Google Scholar
  37. McManus, J. (1975). The cost of alternative economic organizations. Canadian Journal of Economics, 8, 334–350.CrossRefGoogle Scholar
  38. Mukherjee, R. (1974). The rise and fall of the East India company. London: Monthly Review.Google Scholar
  39. Paliwoda, S. J., & Ryans, J. K., Jr. (2008). International marketing: Modern and classic papers (3 volumes). Cheltenham: Edward Elgar.Google Scholar
  40. Pinkerton, R. E. (1932). Hudson’s Bay company. London: Thornton Butterworth.Google Scholar
  41. Porter, G., & Livesay, H. C. (1971). Merchants and manufacturers: Studies in the changing structure of nineteenth-century marketing. Baltimore: Johns Hopkins.Google Scholar
  42. Rugman, A. M. (Ed.). (1982). Inside the multinationals. London: Croom Helm.Google Scholar
  43. Rugman, A. M., & D’Cruz, J. (2000). Multinationals as flagship firms: Regional business networks. Oxford: Oxford University Press.Google Scholar
  44. Scherer, F. M. (1975). The economics of multi-plant operation. Cambridge: Harvard University Press.Google Scholar
  45. Thrupp, S. L. (1948). The merchant class of Medieval London. Ann Arbor: University of Michigan Press.Google Scholar
  46. Varadarajan, R. (2010). Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science, 38, 119–140.CrossRefGoogle Scholar
  47. Willan, T. S. (1956). The early history of the Russia company 1553–1603. Manchester: Manchester University Press.Google Scholar
  48. Wills, J., Samli, A. C., & Jacobs, L. (1991). Developing global products and marketing strategies: a construct and research agenda. Journal of the Academy of Marketing Science, 19, 1–10.CrossRefGoogle Scholar

Copyright information

© Academy of Marketing Science 2010

Authors and Affiliations

  1. 1.Centre for Institutional Performance, School of EconomicsUniversity of ReadingReadingUK
  2. 2.Centre for International Business StudiesUniversity of LeedsLeedsUK

Personalised recommendations