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The study presented in this chapter examines an increasingly important phenomenon in the internationalization of small and medium-sized enterprises (SMEs). Following technological developments, more and more SMEs are using high-commitment foreign market entry modes. These firms, called micromultinationals, have established subsidiaries in international markets despite their resource constraints. The study is an examination of a micromultinational’s development during its internationalization life-cycle regarding changes in international entry mode, organizational structure, communication, sharing of knowledge and control.

A multiple case study method has been selected for this research. Data has been collected from four Finnish micromultinationals.

The study postulates that despite smallness and youth, immediate multinationalization is possible, as is the simultaneous expansion of both geographic scope and operations. The international operation mode of the case companies has moved toward the highest-commitment entry modes during their internationalization life-cycle. The micromultinational’s globalization process takes time and continuous readjustments and development. Some of the cases have struggled with issues related to things such as communication and sharing of knowledge throughout their existence.

The results of the study suggest that any micromultinational should carefully consider their choice of investment mode (wholly owned greenfield vs. partly owned acquisition) to avoid the stagnation phase. The unlearning is difficult and with a certain path dependency, learning advantage of newness does not seem to exist even if a firm is small and relatively young.

This is the first study to examine the internal development of a micromultinational company during its internationalization life-cycle.

As Japanese firms become more involved in foreign operations, they need more personnel skilled in international business. Firms try to obtain such skilled personnel mainly by sending their employees to the United States for MBA degrees. Foreign‐trained Japanese businessmen are currently estimated to be more than 10,000 in number.

The staffing policy of most multinational corporations (MNCs) is increasingly criticized as being discriminatory and counter to multinationalization. Despite professed adherence to the principle of staffing top positions according to merit rather than nationality, MNCs tend to do otherwise. They prefer to reserve the top positions in their subsidiaries for parent‐country managers (PCMs), or to limit the managerial staff in their subsidiaries to host‐country managers (HCMs). Naturally, these policies do not represent a multinational approach; the first gives preference to PCMs at HQ and in the subsidiaries, and the second makes it almost impossible for HCMs to reach top positions at HQ or in subsidiaries outside their home country.

The paper investigates the relationship between China’s net direct foreign investment position and economic development and the investment development path (IDP) theory introduced by Dunning (1981). Using annual data for the period 1979 to 2005 and a fourth order single variable polynomial function we demonstrate that form of the IDP for China and conclude that China entered stage 3 of the path postulated by the IDP theory. By analyzing key factors which have impacted FDI inflows and outflows we find that certain idiosyncratic characteristics of Chinese companies and institutional factors may limit the significant increase in the multinationalization of Chinese firms which would be required for the country to move along the IDP.

The motivation for a firm to operate overseas can vary significantly among smaller firms. The reasons why firms internationalise, rather than remain in the domestic market, vary depending upon: their industry, their home country, their managers’ perceptions and decision-making orientation. Companies are influenced by different motivations to reach foreign markets and use different strategies including different entry modes. These motivations can be internal or external, reactive or proactive. This chapter begins by focusing on how different motivations of firms can influence their success in foreign markets from a generic perspective. The authors then present a case study of Brazilian small- to medium-sized enterprises (SMEs) in the shoe industry, a traditional, low-technology sector, which play an important role in the Brazilian economy. The shoe industry changed significantly over time, until the 1970s had little international experience, in the 1990s was impacted by new Asian market competition, illustrating with firm examples taken from interviews, how SMEs have had to evolve and change their international strategic approaches and motivations over time. The authors conclude with perspectives on SME specificities. Understanding what motivates shoe firms to go abroad and their internationalisation behaviour allows us to provide some suggestions to SME managers in their process of expansion into international markets.

A description is given of the MBA programme which began in 1988 at the International University of Japan (IUJ) in conjunction with an American business school. A discussion of the traditional Japanese management development methods is given and differences from the Western approach are noted. In the 1980s, the global expansion of Japanese firms and the growing consumer demand for foreign goods and services prompted a review of the various management skills required and the methods of management development. The MBA programme at the IUJ aims to combine the best of both Japanese and Western methods and hopes to promote more effective communication between Japanese companies and their foreign counterparts.

This chapter examines the internationalization of the national origin of multinational enterprise (MNEs), starting with European firms at the turn of the 20th century, US firms after World War II, Japanese firms after the 1980s, and, most recently, emerging-market firms, including those from low-income countries such as China and India. The acceleration of this trend in recent decades has been driven by changes in government policy, technology, capital markets and international social networks. As a result, MNEs are being spawned in more countries, in more industries and at earlier stages of a firm's evolution than before. These changes have also transformed the established Western MNE from raw-material-seeker and tariff-jumper to efficiency- and innovation-seeker. Therefore, going forward, the MNE must be viewed as a heterogeneous entity, distinguished by national origin, size and raison d’ệtre – from resource-seeking firms to knowledge-generating and processing firms. The chapter concludes with important questions raised by these developments for future IB research.

Cross-border investment has been a large part of merger and acquisition activity in the Latin American banking sector. Spain and the United States have been the largest investors, participating in almost 70% of the total transaction value. After an explanation of the importance of foreign direct investment and implications for cross-border investment, this paper focuses on the largest investor in the region's banking sector and attempts to find an explanation for the increasing participation of Spanish banks. The paper alludes to a potential new reality: Latin America could be the geographical location where major contenders in banking will be engaged in battles for global dominance.

As an institution, the multinational enterprise has evolved in complexity. From having roots in just a few Western nations, it now has roots in dozens of nations, including many developing countries. Its scope has likewise expanded from natural resource-based industries and manufacturing to a variety of services. And firms are becoming multinational earlier in their lives and at smaller sizes than in the past. This chapter analyzes the evolution of multinationals over the last century, the forces driving that evolution, and distinctive characteristics of the latest wave of multinationals coming out of developing countries. It also explores the risk of a backlash against globalization and multinationals in Western societies, even as these trends gain in popularity in developing countries. It concludes with questions that international business scholars might want to pursue in their future research.

The article discusses the commonalities and differences between the Soviet Union and China in the evolution of the philosophy and practical policy vis‐a‐vis joint ventures with the West. The comparative study is set against the background of the ongoing reform in both countries which seeks to integrate Soviet and Chinese economies into the world economic community. It is emphasised that the terms, impact on the overall economic situation, and prospects of joint ventures with the West in the USSR and China, are determined by the scale, scope and consistency of the implemented reforms which, in their turn, are dependent to a certain extent on the results of business co‐operation with Western firms.