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date: 08 March 2021

Abstract and Keywords

This chapter analyzes internalization theory’s impact on international business (IB) research. It reviews internalization theory’s origins as well as its intellectual foundations, and discusses key applications of the theory in the IB sphere, inter alia, analysis of the multinational enterprise’s (MNE’s) entry mode choice, its international expansion strategies and internal governance, and the regionalizaton phenomenon. The analysis suggests that the contemporary version of internalization theory can enrich scholars’ understanding of a wide range of empirical phenomena, both in IB and in the broader field of strategic management. The chapter concludes with a prediction of internalization theory’s future contributions to management research.

Keywords: International expansion, internalization theory, firm-specific advantages, location advantages, recombination, entry mode, regionalization, internal governance, differentiated network MNE, emerging economy multinationals

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