Dissertation: the Factors That Influence Successful Internationalization of Firms in Emerging Markets: a Case Study of Mtn International

7571 Words Nov 22nd, 2011 31 Pages
Internationalization is essential in the modern world that is filled with many uncertainties. Companies internationalize because of many factors that include profit motives, costs minimization, diversification of the markets, search for new opportunities, saturated domestic market etc. the internationalization process of a firm involves many processes that are interlinked and the firm that wants to internationalize should always take these factors into considerations. The factors include the knowledge on the market, the availability of resources, the strategies to be used and the market environment.

Before a company takes on an international assignment it should plan first. Planning will help the organization not to make
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Companies have played a great role in the global economy in the recent years with many of them going international or at least having the idea of internationalizing their operations. Firms have expanded their operations to international markets and use their diversification in the international market as an important tool and competitive advantage to achieve the much anticipated growth.

The study topic brings the theories that are talked about and the models into action like the Uppsala international process model, network theory and the international entrepreneurship theory as well as some exciting and interesting phenomenon of business today. In the past, academics explained internationalization of firms using stage model that followed a step by step process with the organization beginning from international activity and ending up owning subsidiaries abroad. Such case is depicted by the Uppsala model that was proposed by De Wit, 2002 in 1977 (Masum, & Fernandez, 2008, p. 8). This model has been criticized from the beginning. The initial and increased criticism from scholars led to other authors like as Andersen (1993) and Johanson and Mattsson (1988) to come up with another theory that that is known as the network theory which explains the importance of relationships

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