Internationalization motives: sell more, buy better, upgrade and escape

Alvaro Cuervo-Cazurra (D’Amore-McKim School of Business, Northeastern University, Boston, MA, USA)
Rajneesh Narula (Department of International Business and Strategy, Henley Business School, University of Reading, Reading, UK)
C. Annique Un (D’Amore-McKim School of Business, Northeastern University, Boston, MA, USA)

Multinational Business Review

ISSN: 1525-383X

Publication date: 20 April 2015

Abstract

Purpose

The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification.

Design/methodology/approach

The authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country conditions or avoidance of poor home country conditions.

Findings

These two dimensions result in four internationalization motives: sell more, in which the company exploits existing resources at home and obtains better host country conditions; buy better, in which the company exploits existing resources abroad and avoids poor home country conditions; upgrade, in which the company explores for new resources, and it obtains better host country conditions; and escape, in which the company explores for new resources and avoids poor home country conditions.

Originality/value

This theory-driven classification provides predictive power for future analyses of internationalization motives.

Keywords

Citation

Alvaro Cuervo-Cazurra, Rajneesh Narula and C. Annique Un (2015) "Internationalization motives: sell more, buy better, upgrade and escape", Multinational Business Review, Vol. 23 No. 1, pp. 25-35

Download as .RIS

DOI

: https://doi.org/10.1108/MBR-02-2015-0009

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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