Abstract
To represent the modern world economy, we introduce the worldwide market for
market transactions concept to enable us to model the organization of the firm.
Outsourcing and offshoring are changing the nature of the firm, presenting
internalization/externalization decisions for international managers, and producing unprecedented international relocation of economic activity.
We engage with Williamson’s (1996) challenge to address ‘which transactions
go where and why?’ to explain the outsourcing—offshoring phenomenon.
We offer a novel modelling approach to represent a firm of any scale and scope
in this modern world economy. Propositions that frame our modelling approach
are offered.
We conclude that foreign involvement alongside foreign investment shapes
the scale and scope of the firm as the internationalization of productive capabilities, coordinated through the worldwide market for market transactions,
redefines the modern world economy.
market transactions concept to enable us to model the organization of the firm.
Outsourcing and offshoring are changing the nature of the firm, presenting
internalization/externalization decisions for international managers, and producing unprecedented international relocation of economic activity.
We engage with Williamson’s (1996) challenge to address ‘which transactions
go where and why?’ to explain the outsourcing—offshoring phenomenon.
We offer a novel modelling approach to represent a firm of any scale and scope
in this modern world economy. Propositions that frame our modelling approach
are offered.
We conclude that foreign involvement alongside foreign investment shapes
the scale and scope of the firm as the internationalization of productive capabilities, coordinated through the worldwide market for market transactions,
redefines the modern world economy.
| Original language | English |
|---|---|
| Title of host publication | The Multinational Enterprise and the Emergence of the Global Factory |
| Editors | Peter J. Buckley |
| Place of Publication | Basingstoke |
| Publisher | Palgrave Macmillan Ltd |
| Chapter | 4 |
| Pages | 78–99 |
| Number of pages | 22 |
| ISBN (Electronic) | 9781137402387 |
| ISBN (Print) | 9781137402363, 9781349486687 |
| DOIs | |
| Publication status | Published - 21 Nov 2014 |
Keywords
- transaction cost
- business process
- multinational enterprise
- productive capability