provided us with a much greater focus on the "how" of internationalization processes. This focus
on the how now also has been aided through reference to work on various forms of capital. We
concentrate here on relational and social capital theory. Both the internal and external contexts for
global firms within which knowledge has to be transferred have changed markedly in recent years.
As Buckley and Ghauri (2004, p. 83) note: " ... The process of globalization is ... not only reorganising
power at world level but also at national and subnationallevels. As domestic firms move part
of their production to other countries, technology, knowledge and capital become more important."
Externally, we can look to the impact of e-commerce and more flexible networks of organizations.
Decision makers in MNCs now face far more complex strategic options as a consequence of
e-commerce and management through networks.