Extending theory by analyzing developing country multinational companies: Solving the Goldilocks debate

Published on Aug 1, 2012in Global Strategy Journal2.73
· DOI :10.1111/j.2042-5805.2012.01039.x
Alvaro Cuervo-Cazurra33
Estimated H-index: 33
(College of Business Administration)
I analyze how the study of developing country multinational companies (DMNCs) can help extend theory. The renewed interest in DMNCs has generated a ‘Goldilocks’ debate, with one camp arguing that the analysis of DMNCs is ‘hot’ and requires new theory, another camp arguing that it is ‘cold’ and no new theory is required, and a third camp arguing that it is ‘just right’ and it can be used to extend theory. I follow this third camp and argue that the unique conditions of developing countries influence the internationalization of DMNCs, creating a laboratory for extending theory. I illustrate this idea by reviewing some of the key theories and models of the multinational company and explaining how they can be extended with the study of DMNCs.
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