Author:
Cuervo-Cazurra Alvaro,Narula Rajneesh,Un C. Annique
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.
Subject
General Business, Management and Accounting,Business and International Management
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