Making internalization theory good for practice: the essence of Alan Rugman’s contributions to international business

Narula, R. ORCID: https://orcid.org/0000-0002-4266-2681 and Verbeke, A. (2015) Making internalization theory good for practice: the essence of Alan Rugman’s contributions to international business. Journal of World Business, 50 (4). pp. 612-622. ISSN 1090-9516 doi: 10.1016/j.jwb.2015.08.007

Abstract/Summary

This perspectives paper and its associated commentaries examine Alan Rugman's conceptual contribution to international business scholarship. Most significantly, we highlight Rugman's version of internalization theory as an approach that integrates transaction cost economics and ‘classical’ internalization theory with elements from the resource-based view, such that it is especially relevant to strategic management. In reviewing his oeuvre, we also offer observations on his ideas for ‘new internalization theory’. We classify his other novel insights into four categories: Network Multinationals; National competitiveness; Development and public policy; and Emerging Economy MNEs. This special section offers multiple views on how his work informed the larger academic debate and considers how these ideas might evolve in the longer term.