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ICT INFLUENCE ON THE INTERNATIONALIZATION-INTERNALIZATION COUPLING.

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    • Abstract:
      In the MNE literature it is well established that if technology refers to R&D (i.e., knowledge intensity) then technology causes internationalization to be tightly coupled with internalization. But if technology refers to ICT (i.e., information intensity), then technology can be expected to weaken this conventional coupling. To our knowledge no study has explored this hypothesis. To investigate we analyze available industry level U.S. data from 1982-1997 across all manufacturing sectors and examine the impact of ICT deployment on transnational integration, a suitable empirical indicator of this coupling. In regressions factoring in traditional and additional controls, ICT deployment is significantly and negatively related to TI. The finding confirms that whereas knowledge-based exchange is best understood via transaction cost economics and a crossborder control theory of value appropriation, information-based exchange is likely to be understood via incentive theories of transaction governance and a crossborder contract theory of value creation. [ABSTRACT FROM AUTHOR]
    • Abstract:
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