Theoretical Perspectives Of Internationalisation And Internationalization Process

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

The traditional Institution of economics by North (1990:1-5), declares that, institution provide the rules that structure human interaction in the society and organisation are bound by those rules. Albeit, institutional theory may be important in theorizing EMNCs internationalisation process, it does not encompass or elucidates the industry and firm level factors in internationalisation process. The institutional impact on firms that was analysed through of macro-level factors analysis (North 1990) or micro-level pressures (Di Maggio and Powell 1983), represents a serious limitation in understanding the international strategies of EMNCs. This is particularly because of the complex influence institutional environment has on the activities of firms which needs to be all-encompassing when discussing firms internationalisation activities (Mihailova & Panibratov, 2012). These aforementioned institutional theories are most useful when theorising along the home and host country perspective (Xu & Meyer, 2013). These contexts may impact on the theoretical perspectives stance by researchers when

The Eclectic model/ (OLI) theory suggests that international companies can take ownership , location and internationalisation advantage to gain a competitive advantage in a foreign market . On a different note (Dunning, 2002), stresses that eclectic theory context of internationalisation has deepend in the last two decades. This is due to integration of international economic and financial activitities. This is forster by electronics networks to the liberalisation of cross-border markets and to the emergence of several new countries on the global market , ( Axinn & Matthyssens, 2002). Other authors that has contributed to extending the electic concepts includes (Aulakh, 2007; Banalieva & Santoro, 2009; Deng, 2012a; B Elango, 1998; Balasubramanian Elango & Sethi, 2007; Gammeltoft, 2008; Gammeltoft, Barnard, & Madhok, 2010; Gammeltoft, Pradhan, et al., 2010; R. Hoskisson, Wright, Filatotchev, & Peng, 2013; Krugman, Obstfeld, & Melitz, 2012; Rugman, 1981; Yeung, 1994). The limitation of this theory has been identified by (Athreye & Kapur, 2009), stating that EMNCs may lack the ownership advantage as specified in OLI paradigm due to turbulent home environment in which they