THEORIES & METHODS IN INTERNATIONAL BUSINESS

Dr. Sumit K. Kundu

Professor & James K. Batten Eminent Scholar Chair in International Business

The following books most frequently used in this course:-

1. John. H. Dunning and Sarianna M. Lundan, Multinationals and the Global

Economy, Second Edition, Cheltenham, UK and Northampton, MA, USA:
Edward Elgar, 2008.

2. John H. Dunning, Theories and Paradigms of International Business Activity.

The Selected Essays of John H. Dunning, Volume 1. Cheltenham, UK and
Northampton, MA, USA: Edward Elgar, 2006.

3. R. E. Caves, Multinational Enterprises and Economic Analysis,

Cambridge: Cambridge University Press, 1996 (paperback).

4. John H. Dunning, The Globalization of Business, London and New York:

Routledge (paper back), 1993.

5. John H. Dunning (ed) The Theory of Transnational Corporations, London and

New York: Routledge, 1992 .The book, itself, is part of a series of 20
volumes prepared for UNCTAD, which cannot be purchased separately.

6. C. N. Pitelis and R. Sugden, The Nature of the Transnational Firm,

London and New York: Routledge (paper back) 1991.

7. Alan M. Rugman, Inside the Multinationals: The Economics of Internal Markets,

25th Anniversary Edition, Palgrave Macmillan, 2006.

8. Peter J. Buckley, What is International Business? Palgrave Macmillan, 2005.

9. Masaaki Kotabe and Preet S. Aulakh, Emerging Issues in International Business

Research, Cheltenham, UK and Northampton, MA, USA: Edward Elgar, 2002.

10. Ravi Ramamurti and Jitendra V. Singh, Emerging Multinationals in Emerging

Markets, Cambridge University Press, 2009.
 Selected Readings

1. Theory of Market Imperfections

Hymer, S. H. (1970) The efficiency (contradictions) of multinational

corporations,' American Economic Review, 60: 441-488.

2. Product Cycle Theory

Vernon, R. (1966) International investment and international trade in the

product cycle,' Ouarterly Journal of Economics,
80:190-207

3. Financial Type Theories

Aliber, R. Z. (1970) A theory of direct foreign investment,' in Kindleberger,

C. P., (ed.) The International Firm, Cambridge, MA:
M.I.T. Press, 17-34.

Lessard, D. G. (1977) International diversification and foreign direct

investment,' in Eitman, D. and Stonehill, A. (eds),
Multinational Business Finance, Fourth Edition, Reading,
MA: Addison – Wesley.

4. Intangible Assets/Industrial Organization Theories

*
Caves, R. E. (1971) 'International corporations: the industrial economics of
foreign investment,' Economica (New Series), Vol. 38, pp.
1-27.

Magee, S. P. (1977) 'Information and the multinational corporation: an

appropriability theory of direct foreign investment,' in
Bhagwati, J. N. (ed), The New International Economic
Order, Cambridge, MA: M.I.T. Press.

*
Johnson, H. G. (1970) 'The efficiency and welfare implications of the
international corporation,' in Kindleberger, C. P. (ed),
The International Corporation, Cambridge, MA: M.I.T.
Press.

5. Behavioral/Oligopolistic Theory

Knickerbocker, F. T. (1973) Oligopolistic Reaction and Multinational Enterprise,

Cambridge, MA: Harvard University Press.

Flowers, E. G. (1976) Oligopolistic reaction in European and Canadian direct

 investment in the U.S.,' Journal of International Business
Studies, Volume VII, pp. 43-55.

Graham, E. M. (1978) 'Transatlantic investment by multinational firms: a

rivalistic phenomenon?,' Journal of Post-Keynesian
Economics, 1, Fall, 82-99.

6. Theory of Internalization

Coase, R. H. (1937) 'The nature of the firm,' Economica Vol. 1, Nov., 386-405.

Hennart, J. F. (1986) 'What is Intemalization,' Weltwirtschaftliches Archiv,

122:791-806.

Rugman, A. (1986) 'New theories of the multinational enterprise: an

assessment of internalization theory,' Bulletin of
Economic Research, 38: 101-118.

Buckley, P. J. (1988) 'The limits of explanation: testing the internalization

theory of the multinational enterprise,' Journal of
Intemational Business Studies, XIX, Summer, 181-93.

Teece, D. (1986) 'Transaction cost economics and the multinational

enterprise: an assessment,' Journal of Economic
Behavior and Organization 7, 1 March, 21-46.

7. Eclectic Paradigm

Dunning, J. H. (1981) International Production and the Multinational

Enterprise, London: Allen & Unwin, Chapter 3.

Dunning, J. H. (1988) Explaining International Production, London: Unwin

Hyman, Chapters 1, 2 and 5.

Dunning, J. H. (1988) 'The eclectic paradigm of international production: a

restatement and some possible extensions,' Journal of
International Business Studies, XIX, Spring, 1-31.

Dunning, J. H. (1991) 'The eclectic paradigm of international production: a

personal perspective,' in Pitelis C. and Sugden R. (ed)
The Nature of the Transnational Firm. London and
New York: Routledge.

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8. Macro-economic Theory

Kojima, K. (1982) Macro-economic versus international business approach

to direct foreign investment,' Hitosubashi Journal of
Economics, 23: 1-19.

Kojirna, K. and Ozawa,T. (1984) 'Micro and macro-economic models of direct foreign
investment: toward a synthesis,' Hitosubashi Journal of
Economics, 25, June, 1-20.

Kojima, K. and Ozawa, T. (1985) 'Towards a theory of industrial restructuring and

dynamic comparative advantage,' Hitosubashi Journal
of Economics, 26, December, 135-45.

9. Sequential, Strategy-Related and Resource Based Theories

Peteraf, M. A. (1993) 'The cornerstones of competitive advantage: a resource

based view,' Strategic Management Journal 14, 179-91.

Barney, J. (1991) ‘Firm resources and sustained competitive advantage,’

Journal of Management, Volume 17, pp. 99-120

Wernerfelt (1984) ‘A resource based view of the firm,’ Strategic

Management Journal, Volume 5, Issue 2, pp, 171-180.

Teece, David, Gary Pisano, Amy Shuen (1997) ‘Dynamic capabilities and strategic management,’
Strategic Management Journal, Volume 8, Issue 7, pp.
509-533.

10. Institutional Approaches to International Business

North, Douglas C. (1990) Institutions, Institutional Change and Economic

Performance, Cambridge: Cambridge University Press.

North, Douglas C. (1991) “Institutions”, Journal of Economic Perspectives,

5(Winter), pp. 97-112.

Scott, W. R. (1995) Institutions and Organizations, Thousand Oaks, CA: Sage.

DiMaggio, P. J. and Powell, W. W. (1983) ‘The iron cage revisited: institutional isomorphism and
collective rationality in organization fields’, American
Sociological Review, 48(2): 147-160.

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