 |
 |
|
Horaguchi et al. (1990)Management > Global Firm > Lectures > Independent Research > Horaguchi et al.
Horaguchi et al. (1990) - Setting the Record Straight: Hymer, Internalisation Theory and Transaction Cost EconomicsKindleberger referred to the concept of internalisation and transaction cost market imperfections as the "University of Reading" school of thought. They criticise Hymer's theses for focusing too much on structural market imperfections and ignoring transaction market failure, as discussed by Coase (1937). In addition, Hymer emphasised the market power theory of the MNE, rather than efficiency. The authors argue that internalisation is important, as it values the human intellect (Issues of KM and IM arise here). Firms are a combination of management resources (As Dunning refers to it, Ot), who can create new markets and thus new competitive advantages. (Like from structural market failures OAs arise, from transactional market failures, strengths in information and internalisation arise).
|
|
