Journal
JOURNAL OF INTERNATIONAL BUSINESS STUDIES
Volume 50, Issue 8, Pages 1401-1413Publisher
PALGRAVE MACMILLAN LTD
DOI: 10.1057/s41267-018-0186-0
Keywords
internalization theory; global value chain theory; externalization; outsourcing; global factory
Categories
Ask authors/readers for more resources
In this paper, we suggest that internalization theory might be extended by incorporating complementary insights from GVC theory. More specifically, we argue that internalization theory can explain why lead firms might wish to externalize selected activities, but that it is largely silent on the mechanisms by which those lead firms might exercise control over the resultant externalized relationships with their GVC partners. We advance an explanation linking the choice of control mechanism to two factors: power asymmetries between the lead firms and their GVC partners, and the degree of codifiability of the information to be exchanged in the relationship.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available