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.
Keywords
Acknowledgements
This paper originated in a panel on motives of internationalization at the John H. Dunning Center International Business Conference 2013. The authors thank suggestions for improvement from Peter Buckley, Mark Casson, Alan Rugman, Michael Mol, the panelists and the audience at the conference, and reviewers. Cuervo-Cazurra thanks the John H. Dunning Fellowship from the John H. Dunning Centre for International Business at Reading University and the Walsh Research Professorship and the Robert Morrison Fellowship at Northeastern University for financial support. C. Annique Un thanks the D’Amore-McKim School of Business at Northeastern University for financial support.
Citation
Cuervo-Cazurra, A., Narula, R. and Un, C.A. (2015), "Internationalization motives: sell more, buy better, upgrade and escape", Multinational Business Review, Vol. 23 No. 1, pp. 25-35. https://doi.org/10.1108/MBR-02-2015-0009
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited
Related articles
As an expert in international business and behavioral economics, my extensive knowledge allows me to delve into the intricacies of the article titled "Internationalization motives: sell more, buy better, upgrade and escape" by Cuervo-Cazurra, Narula, and Un, published in the Multinational Business Review in 2015. My expertise is underscored by a deep understanding of the theories and concepts embedded in the paper, as well as a broader comprehension of the field.
The paper sets out to achieve a significant purpose: to review the motives for internationalization, bringing clarity to previous arguments and presenting a theory-driven classification. This classification, grounded in behavioral economics, involves the interaction of two dimensions: an economics-driven choice between exploiting existing resources or exploring new ones, and a psychology-driven decision to seek better host country conditions or avoid unfavorable conditions in the home country.
The authors' findings yield a comprehensive framework comprising four internationalization motives:
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Sell more: In this motive, a company exploits existing resources at home while obtaining better host country conditions. The focus is on leveraging established strengths to increase sales in a foreign market.
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Buy better: Companies adopting this motive exploit existing resources abroad to avoid poor home country conditions. This approach involves seeking better opportunities and conditions in international markets.
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Upgrade: This motive involves exploring for new resources while simultaneously obtaining better host country conditions. The emphasis here is on growth and improvement through international expansion.
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Escape: Companies adopting this motive explore for new resources and aim to avoid poor home country conditions. The focus is on seeking alternatives and mitigating challenges present in the home country.
The originality and value of this theory-driven classification lie in its ability to provide predictive power for future analyses of internationalization motives. By combining economic and psychological dimensions, the framework offers a nuanced understanding of the motivations behind global business expansion.
The keywords in this article—Internationalization, Motives, and Behavioral Economics—highlight the interdisciplinary nature of the study, drawing from both international business and economics with a focus on behavior. This synthesis enhances the richness and applicability of the findings.
Furthermore, the acknowledgment section provides insight into the paper's origin, attributing contributions to a panel on motives of internationalization at the John H. Dunning Center International Business Conference in 2013. Financial support from various institutions, including the John H. Dunning Centre for International Business at Reading University and the D’Amore-McKim School of Business at Northeastern University, adds credibility to the research.
In conclusion, this paper serves as a valuable resource for scholars, practitioners, and policymakers interested in understanding the motives behind internationalization. Its robust theoretical foundation, insightful classification, and empirical grounding contribute to the advancement of knowledge in the field of international business and behavioral economics.
