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The Internationalization of Multinational Companies (MNCs): An intra-sector comparison among firms from developing and developed countries
Halmstad University, School of Business and Engineering (SET), Centre for Innovation, Entrepreneurship and Learning Research (CIEL), Centre for Technology, Innovation and Marketing Management (CTIM2).ORCID iD: 0000-0002-0554-9591
Halmstad University, School of Business and Engineering (SET), Centre for Innovation, Entrepreneurship and Learning Research (CIEL).ORCID iD: 0000-0002-8194-2053
2010 (English)Conference paper, Published paper (Refereed)
Abstract [en]

According to the international statistic data of the United Nations Conference of Trade and Development (Unctad, 2008), the majority of Multinational Companies (MNCs) are from developed countries. However, in the last decade the participation of MNCs from emerging economies in the international flows of Foreign Direct Investment (FDI) increased significantly, making them important global players. Although several scholars have addressed the internationalization process of emerging MNCs, no attempt has been made in the sense of directly comparing the internationalization process of firms from both developed and developing countries. To fill this gap, the aim of the present paper is to highlight the differences and similarities of the determinants and patterns of their internationalization. The integrated analytical model used in this study, which draws on insights from the Eclectic Paradigm and the Uppsala Internationalization approaches, has proved useful by helping to shed some light on the literature about MNCs’ internationalization process. The model in question has been structured in order to explore the differences and similarities of the internationalization processes of MNC from a developed and a developing country. This research uses a qualitative method with an exploratory nature, which allows deeper cross- cultural understanding. Multiple case studies of MNCs from countries with different levels of development (Brazil and Sweden) were carried out; this type of research allows addressing questions related to the determinants and patterns of internationalization. The results of the study show that there are strong evidences, which point out differences in term of ownership advantage development. However, the firms did not show substantial differences regarding internalization advantages. On the other hand, learning and experience of internationalization have been factors that have influenced the pattern and structure of the MNCs in both contexts. However, as the MNC from the developed country is more international and has longer experience, location decisions are no longer heavily influenced by these factors. The international network the MNC is part of and access to technology and knowledge partners are nowadays influencing the MNCs internationalization processes more. These findings are in line with earlier research that has pointed out that learning is most important in the early phases of MNCs international development while networks and location advantages are more important in later stages.

Place, publisher, year, edition, pages
2010.
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:hh:diva-6101OAI: oai:DiVA.org:hh-6101DiVA, id: diva2:356131
Conference
ANPAD Conference ("XXXIV Encontro da ANPAD), Rio de Janeiro, 25-29 September
Available from: 2010-10-11 Created: 2010-10-11 Last updated: 2015-02-18Bibliographically approved

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Awuah, GabrielAndersson, Svante

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