Decision-making in international business

This paper distinguishes three domains of international business theory: the boundaries of the multinational enterprise, the external environment of the enterprise and its internal structure. The central concern of internalisation theory is the boundaries of the firm. Any general theory of international business must analyse the external environment and internal structure as well. Competition dominates the external environment whilst co-operation dominates internal structure. Different models of decision-making are required for each. Different theories of decision-making must therefore be integrated in order to transform internalisation theory into a general theory of international business. This paper examines how this can be done

Historical Research Approaches to the Analysis of Internationalisation

Historical research methods and approaches can improve understanding of the most appropriate techniques to confront data and test theories in internationalisation research. A critical analysis of all “texts” (sources), time series analyses, comparative methods across time periods and space, counterfactual analysis and the examination of outliers are shown to have the potential to improve research practices. Examples and applications are shown in these key areas of research with special reference to internationalisation processes. Examination of these methods allows us to see internationalisation processes as a sequenced set of decisions in time and space, path dependent to some extent but subject to managerial discretion. Internationalisation process research can benefit from the use of historical research methods in analysis of sources, production of time-lines, using comparative evidence across time and space and in the examination of feasible alternative choices

Edith Penrose’s ‘The Theory of the Growth of the Firm’ Fifty Years Later

This is an earlier draft for the introduction to the book "The theory of the growth of the firm" published by Oxford Press, 4th edition, 2009

Endogenous ownership structure:factors affecting the post-privatisation equity in largest Hungarian firms

Using a data set for the 162 largest Hungarian firms during the period of 1994-1999, this paper explores the determinants of equity shares held by both foreign investors and Hungarian corporations. Evidence is found for a post-privatisation evolution towards more homogeneous equity structures, where dominant categories of Hungarian and foreign owners aim at achieving controlling stakes. In addition, focusing on firm-level characteristics we find that exporting firms attract foreign owners who acquire controlling equity stakes. Similarly, firm-size measurements are positively associated with the presence of foreign investors. However, they are negatively associated with 100% foreign ownership, possibly because the marginal costs of acquiring additional equity are growing with the size of the assets. The results are interpreted within the framework of the existing theory. In particular, following Demsetz and Lehn (1985) and Demsetz and Villalonga (2001) we argue that equity should not be treated as an exogenous variable. As for specific determinants of equity levels, we focus on informational asymmetries and (unobserved) ownership-specific characteristics of foreign investors and Hungarian investors

Do black holes radiate?

The prediction that black holes radiate due to quantum effects is often considered one of the most secure in quantum field theory in curved space-time. Yet this prediction rests on two dubious assumptions: that ordinary physics may be applied to vacuum fluctuations at energy scales increasing exponentially without bound; and that quantum-gravitational effects may be neglected. Various suggestions have been put forward to address these issues: that they might be explained away by lessons from sonic black hole models; that the prediction is indeed successfully reproduced by quantum gravity; that the success of the link provided by the prediction between black holes and thermodynamics justifies the prediction. This paper explains the nature of the difficulties, and reviews the proposals that have been put forward to deal with them. None of the proposals put forward can so far be considered to be really successful, and simple dimensional arguments show that quantum-gravitational effects might well alter the evaporation process outlined by Hawking. Thus a definitive theoretical treatment will require an understanding of quantum gravity in at least some regimes. Until then, no compelling theoretical case for or against radiation by black holes is likely to be made. The possibility that non-radiating "mini" black holes exist should be taken seriously; such holes could be part of the dark matter in the Universe. Attempts to place observational limits on the number of "mini" black holes (independent of the assumption that they radiate) would be most welcome.Comment: review article, 80 pp., 3 included eps figures, IOP macros (included

The internationalization theory of the multinational enterprise: past, present and future

International Business (IB) is an inherently complex subject because of its global context, the importance of innovation, and the range of ownership and location factors that need to be examined. Here it is argued that IB theory can learn from economics, but that it should not emulate economics too closely because economics makes restrictive assumptions that assume away important issues in IB. We argue that better IB theory can be created by extending existing theories rather than by starting again with new kinds of theory. However, existing theories need to be formulated in a more explicit manner in order to increase their predictive power. More attention needs to be given to the role of the entrepreneur and the headquarters function. More emphasis also needs to be placed on the industry rather than the firm, so that competition and co-operation between firms can be better understood. The approach is pragmatic and constructive. It not only sets out how IB theory can be extended, but explains exactly how it can be done

Foreign direct investment and economic integration

In this paper, we explore the role of foreign direct investment (FDI) on the competitiveness of emerging economies and economic integration. We structure the paper as follows. Following this Introduction (Section I), in Section II, we assess briefly and critically extant theories of FDI and the MNE. In Section III, we critically assess competitiveness and catching-up theory and policy and the role of FDI in this context. Section IV sets off from limitations of extant scholarship identified in the previous section to develop a novel framework for competitiveness and catching-up and discuss the role of FDI, clusters and government policy in its context. Section V discusses ways through which emerging economies can effect economic integration through enhanced competitiveness and accelerated catching-up, by leveraging strategies informed from recent developments on scholarship in International Business (IB) strategy. Section VI summarizes and concludes

QCD and strongly coupled gauge theories : challenges and perspectives

We highlight the progress, current status, and open challenges of QCD-driven physics, in theory and in experiment. We discuss how the strong interaction is intimately connected to a broad sweep of physical problems, in settings ranging from astrophysics and cosmology to strongly coupled, complex systems in particle and condensed-matter physics, as well as to searches for physics beyond the Standard Model. We also discuss how success in describing the strong interaction impacts other fields, and, in turn, how such subjects can impact studies of the strong interaction. In the course of the work we offer a perspective on the many research streams which flow into and out of QCD, as well as a vision for future developments.Peer reviewe