A Balancing-Process Approach to Firm Internationalization
Drawing 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.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp|
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