Internationalization And Internationalisation Process

964 Words4 Pages
This previous chapter had looked the background study. This chapter review literature and is in two parts. Part one review the theoretical perspectives of internationalisation and internationalisation process. Because this thesis study the drivers and motivations internationalisation process of emerging market multinationals both at the institution, firm, industry level and location choice. Part two of chapter review relevant literature pertaining drivers, motivations and location choice of the EMNCs will be the main theme and focus of this chapter trade theories new FDI trade theories were development by scholars such as that of Dunning, Johansson and Vahlne 1.2 Theories of Foreign Direct Investment and Internationalisation The growth…show more content…
Such competitiveness among organisations level namely rivalry among competitors, bargaining power of suppliers, threat of substitute products, threat of potential entrants, bargaining power of buyers,. These factors they argue will play a role in EMNCs internationalisation process. In a high competitive environment, the organisation will constantly search for innovative and competitive advantage which may force the multinationals to internationalisation abroad. The type of internationalisation activities by multinationals may be sector…show more content…
Organisation they believe commit more resources as they gain more knowledge of the market by first investing in close psychic distant market, (Banalieva & Santoro, 2009; B Elango, 1998; Balasubramanian Elango & Sethi, 2007; Johanson & Vahlne, 1977, 1990; Johanson et al., 2009). Johanson et al, (2009), though has revisited the Uppsala Model and propose a network theory concept approach to internationalisation,(Johanson & Mattsson, 1988),. Acknowledging that business environment is viewed as a web of relationship or network, where experiential knowledge is developed in such relationship. Corroborating this view, Tayeb (2000) stress the importance of psychic distance concept, sequential and incremental stages emphasized in the theory. One thing that is certain is that “The Uppsala Model” can be used to generalise firm’s internationalisation process, while considering other important elements as this model does not account for heterogeneous nature of organisations, businesses and locations, which can influence internationalisation process, especially for

More about Internationalization And Internationalisation Process

Open Document