TY - JOUR
T1 - Competitive Advantage and the Existence of the Multinational Corporation
T2 - Earlier Research and the Role of Frictions
AU - Geisler Asmussen, Christian
AU - Foss, Nicolai Juul
PY - 2014/2
Y1 - 2014/2
N2 - This article provides a counterpoint to Hashai and Buckley's article ‘Is competitive advantage a necessary condition for the emergence of the multinational enterprise?’ We agree with their conclusion that it is, in fact, not a necessary condition, but argue that the theoretical reasons behind this are different and more diverse than the ones they propose. We suggest that much extant economic theory is, in fact, consistent with their view that firms may internationalize without owning or achieving competitive advantages, and we model various other ways in which imperfections can drive their overall result. We strongly applaud Hashai and Buckley's attempt to add more rigor to international business theory and call for future work to extend this debate.
AB - This article provides a counterpoint to Hashai and Buckley's article ‘Is competitive advantage a necessary condition for the emergence of the multinational enterprise?’ We agree with their conclusion that it is, in fact, not a necessary condition, but argue that the theoretical reasons behind this are different and more diverse than the ones they propose. We suggest that much extant economic theory is, in fact, consistent with their view that firms may internationalize without owning or achieving competitive advantages, and we model various other ways in which imperfections can drive their overall result. We strongly applaud Hashai and Buckley's attempt to add more rigor to international business theory and call for future work to extend this debate.
KW - Multinational corporations
KW - Competitive Advantage
KW - Transaction costs
KW - Mergers and acquisitions
KW - Trade theory
KW - Frictions
U2 - 10.1111/j.2042-5805.2013.01068.x
DO - 10.1111/j.2042-5805.2013.01068.x
M3 - Journal article
SN - 2042-5791
VL - 4
SP - 49
EP - 54
JO - Global Strategy Journal
JF - Global Strategy Journal
IS - 1
ER -