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Transaction Cost Theory
The need for control of transactions is more of an obstacle in small companies' internationalisationprocess than in large companies.
We have already established that the greater the degree of uncertainty the greater the advantage will be for the company to control the transactions itself. Since small companies often posses less resources than large, we thought that this would create an obstacle in the internationalisation process. Small companies have also fewer transactions than large and with less business partners.
The single most important location-specific factor when moving production abroad is labour costs.
Dunning, 1980 cited in Dicken 1992 argues, in his eclectic paradigm, that the single most important location-specific factor is labour. We thought that it would be interesting to see if this was the single most important location-specific factor that companies took in consideration when they were about to move production abroad, or if there were other equally important factors influencing.