[1] Together with Peter Buckley, Casson developed the internalisation theory of the multinational enterprise, which is widely used to analyze the internationalization of firms.
He contributed to the modern economic theory of entrepreneurship by synthesizing the ideas of Joseph Schumpeter, Friedrich Hayek, and Frank Knight.
According to this theory, successful entrepreneurs exhibit good judgment in making risky innovations and are rewarded through either profits or salaries, depending on whether they are owners or managers of their firms.
[2] Casson's research suggests that culture and institutions significantly influence the performance of both individual entrepreneurs and large multinational corporations.
This approach led him to conduct a major study on Victorian British entrepreneurship, specifically focusing on the construction of the railway system through private enterprise, which is the subject of one of his most recent books.
This network has played a significant role in reshaping public perceptions regarding the costs and benefits of multinational enterprises and foreign direct investment.
Casson also serves as the general editor of two book series: The Globalisation of the World Economy and Handbooks of Research Methods and Applications in the Social Sciences.
Internalisation theory can be extended to analyse other ways of exploiting knowledge, including licensing, subcontracting (outsourcing), and strategic alliances (joint ventures).
In economic terminology, the values and beliefs represent intangible public goods supplied by the leaders to their respective followers.
Leadership is a costly activity, and leader can be rewarded in a variety of ways; many form non-profit organizations which attract donations or membership subscriptions.
Casson also argues that some values and beliefs are more efficient than others: in particular cultures that encourage trust and legitimate innovation tend to raise the economic performance of a group.
For example, in Casson's theory, market competition is not an outlet for aggression, but a method of resolving differences of opinion in a peaceful way.
Casson's recent research on the Victorian railway system suggests that rise and decline were 'two sides of the coin'.
The legacy of high transport costs caused by the over-building of railways reduced the competitiveness of British manufacturing exports and contributed to industrial decline.