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Abstract
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Article Information:
A Study on the International Diversification Motives of Multinational Corporations
Ling Hu and Lyhorn Moeun
Corresponding Author: Ling Hu
Submitted: November 08, 2012
Accepted: December 21, 2012
Published: May 25, 2013 |
Abstract:
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The study tends to discover what drive Multinational Corporations (MNCs) to expand its international markets. Drawing on previous research and extant theories, this study will propose some conspicuous motives-top management team, host country endowment and firm-unique resource. The study discovers that top management team such as top executives, managers, boards of directors and owners have significantly influence MNCs to expand its business across border. Reviewing a wide range of literature in management and related fields, it is indicated that host country endowment has played a crucial role in spurring MNCs to go overseas markets. Another important actor encouraging MNCs to diversify its markets beyond borders is its ownership advantage of unique resource. A theoretical model, triangle-motive of international diversification, is developed to advance that the above mentioned motives do influence MNCs to internationally diversify its operating activities.
Key words: International diversification, Internationalization, Resource-based view, Upper echelon, , ,
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Cite this Reference:
Ling Hu and Lyhorn Moeun, . A Study on the International Diversification Motives of Multinational Corporations. Research Journal of Applied Sciences, Engineering and Technology, (22): 5297-5302.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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