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Israeli Multinationals: Competing from a Small Open Economy

In: Standing on the Shoulders of International Business Giants

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  • Yair Aharoni

Abstract

Orthodox IB theory initially depicted MNEs as giant firms based in large, developed home markets. The headquarters of these MNEs transfer technology, management know-how, and capital from the home country to their various subsidiaries. Only much later did some researchers recognize that an MNE could be a knowledge seeker in addition to being a knowledge creator. Established MNEs endeavor to augment their knowledge by getting access to foreign-created knowledge, for example by acquisition of foreign firms. The MNE participates in various kinds of localized knowledge simultaneously (Rugman & Verbeke, 2001). The acquired knowledge is then transferred from one subsidiary to another or even to headquarters…

Suggested Citation

  • Yair Aharoni, 2024. "Israeli Multinationals: Competing from a Small Open Economy," World Scientific Book Chapters, in: Arie Y Lewin & Ravi Ramamurti & Elizabeth L Rose (ed.), Standing on the Shoulders of International Business Giants, chapter 19, pages 299-341, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811287510_0019
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    More about this item

    Keywords

    International Business; Internationalization; Strategy; Service Economy; Start-Up High-Technology Companies; High-Technology; Managerial Decision-Making; Business Education; State-Owned Enterprises; Small- and Medium-Sized Enterprises;
    All these keywords.

    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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