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.
Year of publication: |
2010
|
---|---|
Authors: | Kim, Min-Young ; Mahoney, Joseph T. ; Tan, Danchi |
Institutions: | College of Business, University of Illinois at Urbana-Champaign |
Saved in:
freely available
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