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The Importance Of Language In International Knowledge Transfer, Lawrence Welch, Denice Welch
The Importance Of Language In International Knowledge Transfer, Lawrence Welch, Denice Welch
Lawrence Welch
Abstract Drawing on insights from managerially-oriented literature, this article explores the role of management in situations where the market transaction costs of using local, independent operators are negligible at market entry, but grow over time. A key question pertaining to this situation is: what management instruments may ensure persistent concurrence between changing pressure for internalisation in a foreign market and the effectuated internalisation of a MNE in that market?
Key Results The article demonstrates the operating cost saving potential of putting in place options for gradual internalisation. Practical examples of such options are outlined. It is emphasized …