Organizing the modern firm in the worldwide market for market transactions

Peter W. Liesch*, Peter J. Buckley, Bernard L. Simonin, Gary Knight

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter

3 Citations (Scopus)


To represent the modern world economy, we introduce the worldwide market for market transactions concept to enable us to model the organization of the firm.

Outsourcing and offshoring are changing the nature of the firm, presenting internalization/externalization decisions for international managers, and producing unprecedented international relocation of economic activity.

We engage with Williamson’s (1996) challenge to address ‘which transactions go where and why?’ to explain the outsourcing—offshoring phenomenon.

We offer a novel modelling approach to represent a firm of any scale and scope in this modern world economy. Propositions that frame our modelling approach are offered.

We conclude that foreign involvement alongside foreign investment shapes the scale and scope of the firm as the internationalization of productive capabilities, coordinated through the worldwide market for market transactions, redefines the modern world economy.
Original languageEnglish
Title of host publicationThe Multinational Enterprise and the Emergence of the Global Factory
PublisherPalgrave Macmillan
Number of pages22
ISBN (Electronic)9781137402387
ISBN (Print)9781137402363
Publication statusPublished - 4 Nov 2014


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