Internationalization Theory and Korean Multinationals View Full Text


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Article Info

DATE

1999-04

AUTHORS

M. Krishna Erramilli, Rajesh Srivastava, Seong-Soo Kim

ABSTRACT

Is the internationalization theory, which has been employed to explain the international expansion patterns of Western firms, equally good for Asian MNCs? Employing South Korean foreign direct investment data from 1973 through 1990, the paper tests two central tenets of the internationalization theory. Results show that physical distance plays a critical role in market selection during the early waves of investment, but economic factors become more important in subsequent waves of investment. Furthermore, the use of majority ownership modes increases over time, but firms appear to ‘leapfrog’ when the market potential is good. The paper concludes that the internalization theory could be very useful even in an Asian context, particularly when employed in conjunction with strategic and economic models. More... »

PAGES

29-45

References to SciGraph publications

  • 1990-09. The Determinants of Export Decisions and Attitudes to a Distant Market: Norwegian Fishery Exports to Japan in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1986-09. Modes of Foreign Entry: A Transaction Cost Analysis and Propositions in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1977-03. Foreign Investments by Service Firms: The Case of Multinational Advertising Agencies in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1993-06. On the Internationalization Process of Firms: A Critical Analysis in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1977-03. The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1978-03. An Attempted Integration of the Literature on the Export Behavior of Firms in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1977-03. The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1988-09. The Effect of National Culture on the Choice of Entry Mode in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1992-09. The Expansion of Foreign Direct Investments: Discrete Rational Location Choices or a Cultural Learning Process? in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1981-06. The Decision-Maker and Export Entry and Expansion in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 1991-09. The Experience Factor in Foreign Market Entry Behavior of Service Firms in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • Identifiers

    URI

    http://scigraph.springernature.com/pub.10.1023/a:1015406118378

    DOI

    http://dx.doi.org/10.1023/a:1015406118378

    DIMENSIONS

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