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The Economics of Business Process Design in Multinational Firms

In: International Business

Author

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  • Peter J. Buckley
  • Martin J. Carter

Abstract

The declared aim of this chapter is to bring together insights from the work of economists and management theorists on questions of the organisation of the firm. Each approach has much to offer the other. Economists interested in the organisation of international business have tended to focus on questions of the boundaries of the organisation; that is, of its exlemlll structure. The analysis of transaction costs has been used, for example, to explicate the decision to export, to license or to manufacture overseas, and also the participation in gv s and alliances (Buckley and Casson, 1976, 1985; Buckley and Glaister, 1994). However, a good deal of attention in the management literature is applied to the debate about internal organisation. Writers on management have promoted new structures and new approaches to organisation, using ideas from many sources. These include studies of Japanese business (Pascale and Athos, 1981), of successful American businesses (Peters and Waterman, 1982) and the analysis of quality management (Deming, 1986). This contribution is an attempt to apply insights from the transaction cost approach to questions of internal organisation of the kind addressed in this management literature.

Suggested Citation

  • Peter J. Buckley & Martin J. Carter, 1998. "The Economics of Business Process Design in Multinational Firms," Palgrave Macmillan Books, in: International Business, chapter 9, pages 217-245, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26416-2_9
    DOI: 10.1007/978-1-349-26416-2_9
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    Cited by:

    1. Buckley, Peter J. & Carter, Martin J., 2002. "Process and structure in knowledge management practices of British and US multinational enterprises," Journal of International Management, Elsevier, vol. 8(1), pages 29-48.
    2. Li, Ke, 2007. "Transaction cost, corporate governance and division of labor--A general equilibrium analysis of professional managers and its implication to China's practice," Research in International Business and Finance, Elsevier, vol. 21(3), pages 447-468, September.
    3. Mudambi, Ram, 1999. "MNE internal capital markets and subsidiary strategic independence," International Business Review, Elsevier, vol. 8(2), pages 197-211, April.

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