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Distance-related Barriers and the Internationalisation of Finnish MNEs


  • Lundan, Sarianna M.


In an integrated global economy, multinational enterprises (MNEs) have more opportunities than ever to reap the benefits of broader markets and more possibilities for an extensive division of labour between different locations. In spite of this, the evidence on the spread of the activities of MNEs seems to indicate a strong regional tendency, at least for the largest MNEs. This paper examines the theoretical arguments for the existence of such boundaries in an integrated global economy, and then examines their empirical importance using recent evidence on the internationalisation patterns of Finnish MNEs. We find that while some of the largest MNEs do indeed appear to be quite regional, some of the smaller internationalising firms are notably more global in terms of the spread of their activities.

Suggested Citation

  • Lundan, Sarianna M., 2009. "Distance-related Barriers and the Internationalisation of Finnish MNEs," Discussion Papers 1193, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1193

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    References listed on IDEAS

    1. Palmberg, Christopher & Pajarinen, Mika & Nikulainen, Tuomo, 2007. "Transferring Science-based Technologies to Industry - Does Nanotechnology Make a Difference?," Discussion Papers 1064, The Research Institute of the Finnish Economy.
    2. Palmberg, Christopher & Nikulainen, Tuomo, 2006. "Industrial Renewal and Growth through Nanotechnology ? - An Overview with Focus on Finland," Discussion Papers 1020, The Research Institute of the Finnish Economy.
    3. Carlsson, B & Stankiewicz, R, 1991. "On the Nature, Function and Composition of Technological Systems," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 93-118, April.
    4. Maine, Elicia & Garnsey, Elizabeth, 2006. "Commercializing generic technology: The case of advanced materials ventures," Research Policy, Elsevier, vol. 35(3), pages 375-393, April.
    5. Bergek, Anna & Jacobsson, Staffan & Carlsson, Bo & Lindmark, Sven & Rickne, Annika, 2008. "Analyzing the functional dynamics of technological innovation systems: A scheme of analysis," Research Policy, Elsevier, vol. 37(3), pages 407-429, April.
    6. Staffan Jacobsson & Anna Bergek, 2004. "Transforming the energy sector: the evolution of technological systems in renewable energy technology," Industrial and Corporate Change, Oxford University Press, vol. 13(5), pages 815-849, October.
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    More about this item


    multinational enterprises; internationalisation; entropy; cultural distance; institutional distance;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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