Oxford Handbook of International Business

896 Pages·2001·4.85 MB·English

by  Alan M. Rugman

The Oxford Handbook of International Business
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The Oxford Handbook of International Business
Edited by
Alan M. Rugman
and
Thomas L. Brewer
GreatClarendonStreet,OxfordOX26DP
OxfordUniversityPressisadepartmentoftheUniversityofOxford
ItfurtherstheUniversity'sobjectiveofexcellenceinresearch,scholarship,
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©OxfordUniversityPress,2001
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Firstpublished2001
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Oxfordhandbookofinternationalbusiness/
editedbyAlanM.RugmanandThomasL.Brewer.
p.cm.
Includesbibliographicalreferencesandindex.
1. Internationaltrade.I.Rugman,AlanM.II.Brewer,ThomasL.,1941–
HF1379.O9962001658.8′ 48—dc212001016400
ISBN0-19-924182-1
Preface
InresponsetothenewinitiativeofOUPtolaunchtheOxfordHandbookseriesweinvitedleadingscholarsinthefield
of international business to write original state of the art literature reviews for this book. These chapters are designed
tosurveyandsynthesizetherelevantliterature.Eachauthorhasbeenencouragedtobringanalyticalinsightandcritical
thinking to this task.
Eachofthepotentialauthorsidentifiedisanauthorityonthetopic,asrecognizedbyanextensivesetofpublicationsin
leading refereed journals and by citations to this body of work. All have been active as leaders in the Academy of
International Business, the professional body for scholars in the field of international business with a worldwide
membership of approximately 3,000 academics. All have attended the annual conferences of the AIB or published in
theJournal of International BusinessStudies. One of thetwoeditors of thisbook is ProfessorThomas Brewer,thecurrent
editorofJIBSandtherebypositionedatthecentreofthemostextensivenetworkofauthorsandrefereesintheareaof
international business. The second editor, Professor Alan Rugman, has been identified as one of the five most
influential scholars in the field of international business, based on citation counts. He is the author or editor of thirty
books in the field.
In order to determine appropriate contributors to the Oxford Handbook of International Business, and therein its content,
theeditors haveconsultedtwo‘domain’statements. FirstisthatoftheAcademyofInternationalBusiness,as reflected
in the statement of the editorial board of JIBS.
The Journal of International Business Studies (JIBS) welcomes manuscripts on multinational and other firms' business
activities, strategies and managerial processes that cross national boundaries. The journal also welcomes
manuscripts on the interactions of such firms with their economic, political and cultural environments. We are
interestedinpapersthatareexceptionalintermsoftheory,evidence,or methodologyandthatsignificantlyadvance
social scientific research on international business. As a methodologically pluralistic journal, JIBS welcomes
conceptual and theory-development papers, empirical hypothesis-testing papers, mathematical modelling papers,
casestudies,andreviewarticles.Thejournalhasaspecialinterestinresearchonimportantissuesthattranscendthe
boundaries of single academic disciplines and managerial functions. We therefore welcome inter-disciplinary
scholarship and commentaries that challenge the paradigms and assumptions of individual disciplines or
vi PREFACE
functions; such papers, however, should be grounded in conceptual and/or empirical literature. The journal does
not accept manuscripts about teaching materials or methods.
The second statement is that of the International Management Division of the Academy of Management.
InternationalManagement.Specificdomain:contentpertainingtotheory,researchandpracticewithaninternationalor
cross-cultural dimension. Major topics include investigations of the adjustments organizations make in order to
succeedinvariouscountries;investigationsofthecross-border managementofoperations,includingmulti-country,
multi-unit strategy formulations and implementations; investigations of evolving organizational forms and
management practices that are the consequence of the interaction of two or more socially-embedded, multi-level,
evolvingbusiness processes (from individual to supranational)and theiroutputs; investigations of thecross-border
differential impact of cultural, social, economic, technological, and political forces on organizational forms and
management practices; comparative management studies; and other research with an international dimension.
Basedonthesetwodomainstatements, ProfessorsBrewerandRugmanmetandinteractedonnumerous occasionsto
develop and refine the list of twenty-eight chapters. These chapters cover all of the major themes identified in these
domain statements. The book is arranged in six parts dealing in turn with:
I. History and Theory of the Multinational Enterprise: six chapters;
II. The Political and Policy Environment: five chapters;
III. Strategy for MNEs: four chapters;
IV. Managing the MNE: six chapters;
V. Regional Studies: five chapters;
VI. Conclusions: two interdisciplinary and thematic chapters.
This structure, and the potential contributions, have been discussed with several other senior scholars in the field of
international business. The design of the book reflects the current content of the field and also covers the major
intellectual issues of currentand likely future interest. For example, a keylong-term intellectual debate stems from the
contrasting disciplinary perspectives of economics and political science as they analyze the role of multinational
enterprises and publicpolicy. InPart II our chaptersare linked toaddress thiscore issue; and authors inParts I, III, IV,
and V were requested to consider this issue in their particular chapters. Another debate relates to the influence of
culture on firm strategy and structure. Besides Chapters 18 and 22 which specifically address the issue, this was also
considered by the authors of Chapters 13–15 and 24–8.
A.R. and T.B.
Acknowledgements
WithoutthesupportofTempletonCollege,UniversityofOxford,thisbookwouldnothavebeenpossible.DeanRory
Knightinparticularhelpedtofacilitateanauthors'conferenceattheCollegeinApril2000.Thiswaspartlyfundedbya
gift from The Friends of Templeton, Chair Mr John Morrell.
Invaluablesecretarial assistance withthe book, conference, and ongoing support for Professor Rugman was provided
by Mrs Denise Edwards: other support was provided by Corinne Wride and Anne Greening.
The editors are pleased to acknowledge the insight and editorial support of David Musson and Sarah Dobson of
Oxford University Press.
We are also extremely grateful to all the contributors for their professional attention to detail, delivery of abstracts,
drafts, and revised chapters in a prompt manner, and theirgood humour and tolerance throughout this long process.
Alan M. Rugman, Oxford University
Thomas Brewer, Georgetown University
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Contents
List of Figures xiii
List of Tables xv
List of Contributors xvii
PART I HISTORY AND THEORY OF THE MULTINATIONAL ENTERPRISE
1. The History of Multinational Enterprise MIRA WILKINS 3
2. The Key Literature on IB Activities: 1960–2000 JOHN H. DUNNING 36
3. International Trade Theory and International Business JAMES R. MARKUSEN 69
4. Strategic Complexity in International Business PETER BUCKLEY AND MARK CASSON 88
5. Theories of the Multinational Enterprise JEAN-FRANçOIS HENNART 127
6. Location, Competitiveness, and the Multinational Enterprise ALAN M. RUGMAN AND ALAIN VERBEKE 150