Reorganizing the Firm Boundaries of Innovation in the Global Enviroment

This paper investigates those mechanisms how the global aspects have shaped the boundaries of the firm. A main driving force of reshaping new boundaries is innovation. Main logic of the paper is to connect dominant theories of the firm - transaction cost, contracting, information, location, and make-or-buy to those foundations of globalization that might explain new shapes of firm boundaries. The paper addresses the role of markets, organizational forms, human capital and R&D, outsourcing and FBI decisions that might facilitate the globalization process. It also discusses about country effects, i.e. about path-dependent changes in political climate, improvements in national institutions and overall development of information technology that has made it possible for new participants to take part to ongoing globalization. Finally, it compares whether globalization of production has different pathways than globalization of R&D as a potential research opportunity in the future