Theoretical perspectives on firms' internationalization

Question 1

Explain the frameework of drivers of firms to internationalize

Answer 1

Matrix of drivers (internal, external) and nature of decision (planned, emergent).

Internal:esources, competencies and skills
External: Opportunity and threat (SWOT matrix)
Planned decisions: Strategy rest of carefully considered plan.
Emergent decisions: Directon and shape of internaitonalization emerges gradually due to learning.

Question 2

Why use theory on internationalization:

Answer 2

We are trying to explain an empirical phenomena

Question 3

Researchers to know upon the 4 theories

Answer 3

Rask adn Håkonsson, 2008. for framework of drivers, nature of decision.
Hollensen for framework of motives/triggers.

Question 4

Explain the framework of motives (proactive, reactive) and triggers(external, internal)

Answer 4

Motives and triggers are linked.

Internal, proactive: Profit and growth
Economics of scale

Internal, reactive:
Risk diversification

External, proactive: Foreign market oppotunities

External, reactive; Small domestic market, compt. pressures

Question 5

Explain drivers in relation to the four perspertives.

Answer 5

Drivers (internal, external)
Nature of decision (planned, emergent)

• Learning: Internal, emergent = risk averse, gradual planning
• Strategic: External, planned = foreign market oppotunities, planned
• Inter-org: External, emergent. Foreign market oppotunities, gradual planning
• inst. econ.perspective: Internal, planned. Risk aversion, planned