Dear colleagues,
I have a question about applying a construct from the Internalization Theory (FSA) as a mechanism of the internationalization process theory (Uppsala Model). Since one is from the transaction cost paradigm and the other is from a behavioral paradigm I am "infringing" some philosophical ontology?
I appreciate the help from International Business experts
P.S. I apologize in advance if this is a dumb question.
Hello, if I do not miss your point the FSA refers to ‘firm specific advantages’ derived from considerations by S. Hymer and Ch. Kindleberger and then adopted to the theory of international production (the eclectic ‘OLI’ paradigm) by J.H. Dunning as one of its pillars (as well as the internalization theory introduced to international business by P.J. Buckley and M.C. Casson). If it is so, perhaps a broaden framework would be considered as a basis for your studies.
It is also worth confronting your ideas with some recent works in this field, which are among others:
J.H. Dunning, S.M. Lundan (2008), Institutions and the OLI Paradigm of the Multinational Enterprise, Asia Pacific Journal of Management 25(4), pp. 573–593.
J.H. Dunning, S.M. Lundan (2010), The Institutional Origins of Dynamic Capabilities in Multinational Enterprises, Industrial and Corporate Change 19(4), pp. 1225–1246.
L. Eden, L. Dai (2010), Rethinking the O in Dunning’s OLI/Eclectic Paradigm, Multinational Business Review 18(2), pp. 13-34.
A.M. Rugman (2010), Reconciling Internalization Theory and the Eclectic Paradigm, Multinational Business Review 18(2), pp. 1-12.
Finally, when looking for the answer on the possible connection of the FSA concept and the Uppsala model, I think that useful could be the paper:
J-E Vahlne, J. Johanson, (2013), The Uppsala model on evolution of the multinational business enterprise – from internalization to coordination of networks, International Marketing Review 30(3), pp. 189–210.
where the authors tried to confront the OLI paradigm with the evolved internationalization model as well as introduced the theory of multinational business enterprise (MBE). Please note as well their recent work concerning the MBE announced in the Journal of International Business Studies (2020) 51, 4–10.
I apologize for not providing the straight and clear answer to your question but I hope you find the above remarks somehow useful in your work. Good luck.
Kind regards,
Marcin Kuzel
Si se puede levantar el constructo desde el punto de vista FSA si las empresas han llegado a ser exitosas, con ventajas competitivas, con tecnología y innovación en su productividad, en la organización de teorías de internacionalización, complementando el manejo de cuidado del ambiente, seguridad de los trabajadores y cumplimiento de las firmas de libre tratado comercial, o los convenios, entonces se exige diferenciación y competitividad para este de empresas.
No question is irrelevant if well put!
The core concepts in internationalization theory, also known as the Uppsala model, are psychic distance and experience, with the latter held as a means to overcome the former. FSAs (firm-specific advantages) are a core concept in internalization theory (and in the OLI framework, which differs from internalization theory in matters not related with FSAs).
So, in answer to your question, the concept of FSAs is not a mechanism in internationalization theory. Unless one conceives of a mechanism whereby FSAs overcome psychic distance, the theories are and should remain distinct. Of course, there can be attempts at integration and synthesis, but for your purpose I would conclude that FSAs do not belong in internationalization theory.
Dear Juan Carlos Apaza Paucara,
May I with due respect ask you to write in English as it will be difficult to understand you and to follow the discussion if you write in a language that we don't understand.
Best Regards
Desalegn Abraha
Dear Maria Luiza Carvalho de Aguillar Pinho,
As a response to your question; is it admissible to use FSA constructs from internalization theory as a mechanism for the internationalization process theory? It is up to you to use any construct and or concept from any theory or model if you want to develop a conceptual framework/model or if you want to apply a certain theory in your research. It is free and admissible to apply any model, conceptual framework or theory. Moreover, it is also possible any theory in full or partially or any construct or concept from any theory/conceptual framework/model.
Best Regards
Desalegn Abraha
If the construct can be raised from the FSA point of view if companies have become successful, with competitive advantages, with technology and innovation in their productivity, in the organization of internationalization theories, complementing the management of care for the environment, security of workers and compliance with free trade agreement signatures, or agreements, then differentiation and competitiveness are required for this company.