What are the internationalisation patterns of outcome of SSA firm’s internationalisation?
2. Theoretical Perspectives
The theories and study of multinational corporations (MNCs) evolution and internationalisation have been a prominent aspect of the international business (IB) literature for decades. To some scholars, internationalisation is the approach or steps which an organisations’ takes to engage in business activities abroad in order to build required resources and become major players on the global stage (Jansson, 2009; Johanson & Vahlne, 1977; Meyer & Thaijongrak, 2013). While to others the internationalisation process (IP) is how a business spreads locally and between countries both regionally and globally (Jansson, 2009:48). …show more content…
Dunning, (1988) argue that organisations’ use their ownership, location advantage and internalisation to gain a competitive advantage in a foreign market. Ownership advantages are firms’ specific competitive advantages which may include both the tangible and intangible resources of a firm; namely – financial and physical assets, skills, human resources, internal and external sources of knowledge. More so, home country specific advantages are also regarded as firms’ ownership advantage which may include resources endowments, favourable domestic business environment (Elango and Pattnaik, 2007; Javalgi and White, 2002). Firms with high ownership advantages at home will be motivated to internationalise and compete strongly in a foreign market, the investment. However, such advantages are specific location and market specific. This entails that firms’ internationalisation is a proof of their possession of ownership advantage at home that enables them to expand and compete well in a foreign market (Dunning, …show more content…
However, some of the observed patterns in the internationalisation process of EMNCs seems to challenge the mainstream theories of the MNCs (Deng, 2012; Ramamurti 2009). These have also become theoretical drawback in the explanation of the internationalisation of EMNC’s. Mathews (2006) for example see divergence on EMNC 's behaviours and they are at odds with traditional internationalisation theories as empirical studies that have led to their development of these theories were based on the perspectives of firms’ from the advanced economies in Europe, USA and Japan (Luo & Peng, 1999; Marinova & Marinov, 2011). Therefore, it is not surprising to see how these theories reflects on the behaviour of firms’ from these advanced economies in comparison with EMNCs international behaviour. Gammeltoft et al (2010) assert that the specificities of EMNC 's context may be distinct and represents a different evolutionary process than those of the developed economies MNCs As studies from BRICs shows a distinct approach. A key criticism of the OLI paradigm particularly is the focus on manufacturing sector as firms from different sector may be motivated to internationalize based on factors entirely different from those suggested by
2. Theoretical Perspectives
The theories and study of multinational corporations (MNCs) evolution and internationalisation have been a prominent aspect of the international business (IB) literature for decades. To some scholars, internationalisation is the approach or steps which an organisations’ takes to engage in business activities abroad in order to build required resources and become major players on the global stage (Jansson, 2009; Johanson & Vahlne, 1977; Meyer & Thaijongrak, 2013). While to others the internationalisation process (IP) is how a business spreads locally and between countries both regionally and globally (Jansson, 2009:48). …show more content…
Dunning, (1988) argue that organisations’ use their ownership, location advantage and internalisation to gain a competitive advantage in a foreign market. Ownership advantages are firms’ specific competitive advantages which may include both the tangible and intangible resources of a firm; namely – financial and physical assets, skills, human resources, internal and external sources of knowledge. More so, home country specific advantages are also regarded as firms’ ownership advantage which may include resources endowments, favourable domestic business environment (Elango and Pattnaik, 2007; Javalgi and White, 2002). Firms with high ownership advantages at home will be motivated to internationalise and compete strongly in a foreign market, the investment. However, such advantages are specific location and market specific. This entails that firms’ internationalisation is a proof of their possession of ownership advantage at home that enables them to expand and compete well in a foreign market (Dunning, …show more content…
However, some of the observed patterns in the internationalisation process of EMNCs seems to challenge the mainstream theories of the MNCs (Deng, 2012; Ramamurti 2009). These have also become theoretical drawback in the explanation of the internationalisation of EMNC’s. Mathews (2006) for example see divergence on EMNC 's behaviours and they are at odds with traditional internationalisation theories as empirical studies that have led to their development of these theories were based on the perspectives of firms’ from the advanced economies in Europe, USA and Japan (Luo & Peng, 1999; Marinova & Marinov, 2011). Therefore, it is not surprising to see how these theories reflects on the behaviour of firms’ from these advanced economies in comparison with EMNCs international behaviour. Gammeltoft et al (2010) assert that the specificities of EMNC 's context may be distinct and represents a different evolutionary process than those of the developed economies MNCs As studies from BRICs shows a distinct approach. A key criticism of the OLI paradigm particularly is the focus on manufacturing sector as firms from different sector may be motivated to internationalize based on factors entirely different from those suggested by