International Firms Overview

Principles

Definition

International firms is the academic concept and research domain focused on understanding the strategies, structures, and performance of business organizations that operate across national borders. This field investigates how such firms manage diverse environmental complexities, exploit global opportunities, and navigate cross-border challenges to achieve their objectives.

Ontological type

Entry Strategies

Global Integration vs Local

Organizational Structures

Key developments

Key Figures

Internalization-Based Expansion era

John H. Dunning [1], with ties to University of Manchester [3] and Rutgers, The State University of New Jersey [4], epitomizes the Internalization-Based Expansion era. In International Production and the Multinational Enterprise [7], Dunning advanced the internalization framework by explaining why firms undertake direct foreign investment and how governance choices shape competitive advantage in this era; in The influence of firm size, industry, nationality, and degree of multinationality on the growth and profitability of the World's largest firms, 1962–1972 [8], he linked multinationality and scale to firm performance, underscoring the strategic value of ownership advantages during this period. Jagdish N. Bhagwati [2], associated with American Finance Association [5] and Massachusetts Institute of Technology [6], is the other major contributor to this era's discourse on international business governance. His 1977 study The international operations of national firms: A study of direct foreign investment [9] framed the analysis of how national firms expand through direct investments and how policy environments condition cross-border activity during the internally governed expansion era.

Networked Regionalization era

Mike W. Peng[1], affiliated with Chinese University of Hong Kong[3] and the University of Hawaii System[4] during this era, is a leading voice in international business. His 2008 paper An institution-based view of international business strategy: a focus on emerging economies[6] reframes international business strategy by foregrounding institutions and explaining how regional networks and asset recombination shape firm scope across regions. Tatiana Kostova[2], affiliated with University of South Carolina[5], authored ADOPTION OF AN ORGANIZATIONAL PRACTICE BY SUBSIDIARIES OF MULTINATIONAL CORPORATIONS: INSTITUTIONAL AND RELATIONAL EFFECTS[7] (2002). This work identifies institutional and relational effects that shape how subsidiaries adopt practices, enabling regional networks to align local assets with corporate strategy within the networked regionalization era.

Multiple Embeddedness era

Klaus E. Meyer [1] is a scholar whose work in this era is anchored with affiliations at University College London [3] and The University of Queensland [4]. His key contributions span the 2010 paper Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness [7], the 2017 paper The home country of the MNE: The case of emerging economy firms [9], and the 2020 paper Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda [8], which collectively extended how embeddedness mediates strategy, governance, and the pace of internationalization in this era. Ram Mudambi [2] is a scholar whose work in this era spans affiliations with Peking University [5] and Fox College [6]. His contributions center on the 2010 paper Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness [7] and the 2010 Introduction: Place, space and organization-- economic geography and the multinational enterprise [10], which together deepen understanding of how place and regional embeddedness shape MNE strategy in this era.