A Balancing-Process Approach to Firm Internationalization
AbstractDrawing on the resource-based view of the firm, this paper develops a balancing-process approach to explain the motivations and location choices of foreign direct investment (FDI). In this approach, FDI is viewed as a means to balance a firm's portfolio of resources and capabilities through utilizing foreign strategic factor markets with the ultimate goal of achieving growth and sustainable competitive advantage. This approach joins exploitative and explorative FDI in a single framework and helps explain why a firm can conduct both types of FDI simultaneously.
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Bibliographic InfoPaper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 10-0104.
Date of creation: 2010
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Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
- NEP-CSE-2011-02-05 (Economics of Strategic Management)
- NEP-IFN-2011-02-05 (International Finance)
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