IBS Lunchtime Research Seminar - Broadening the Scope of Internalization Theory to Account for Deglobalizing Trends

You are cordially invited to attend an International Business and Strategy Departmental Research Meeting, during which there will be a presentation by Cristian Luise, Henley Business School. A reminder that attendance for IBS (full time, research oriented) staff and full-time students is compulsory, and where possible, must be in person. Individuals unable to attend in person, due to legitimate reasons will be provided a Teams link on request. Non-IBS staff are welcome to attend, but must register prior to the event. If you have not received the email invite please email Angie Clark

Please join us in Room 108, Henley Business School, if you would like to attend, please register using the link below:

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Please make sure you let me know in advance if you intend to attend in person so that the correct amount of catering is booked.

Date: Wednesday 1st May 2024, HBS Room 108

Time: 13.00 - 14.15pm

Abstract:

Internalization theory has been playing a key role in explaining firms’ international operations. Its key postulates, where the firm maximize profits by choosing the least cost location where to carry out productive activities, and the governance means (e.g., the content of a contractual agreement) that guarantee the appropriation of value by avoiding costly renegotiations, are still central. In the context of deglobalization, firms’ costs and benefit analysis in terms of location and governance choices must accommodate the potential uncertainty posed by the increased variety of actors that are now trying to capture value. While we concur that even within deglobalizing periods firms must account for the costs and benefits of their location and governance choices – which in themselves become more uncertain as they could be affected by non-economic actions of various actors involved –, understanding the feasibility of an investment also requires interpreting the objectives pursued by counterparties (both firms and other actors) and the constraints they face. The article proposes a way to broaden the scope of the theory by studying investment negotiations for infrastructure projects.