Internationalization Motives: Sell More, Buy Better, Upgrade and Escape

Published on Apr 20, 2015in The Multinational Business Review
· DOI :10.1108/MBR-02-2015-0009
Alvaro Cuervo-Cazurra33
Estimated H-index: 33
(NU: Northeastern University),
Rajneesh Narula40
Estimated H-index: 40
(University of Reading),
C. Annique Un14
Estimated H-index: 14
(NU: Northeastern University)
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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 a...
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