“…There are a number of reasons why internalization within the MNE can alleviate the market imperfections described above. First, internalization enables the corporate HQ to engage actively in the selection and training of managers, such that the goals of these managers align better with those of the firm in its entirety (Ouchi, 1979), including what scholars have termed 'socialization', e.g., through rotation of personnel across dispersed units (Edström & Galbraith, 1977;Chi & Nystrom, 1998;Zeng, Grøgaard & Steel 2018, Ambos, Kunisch, Leicht-Deobald & Steinberg, 2019. Second, internalization facilitates monitoring, since it can be imposed by HQ using fiat without risking the appropriation of firm-specific knowledge by potential competitors.…”