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Path dependence, MNCs and the internationalisation process: a relational approach

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  • Araujo, Luis
  • Rezende, Sergio

Abstract

In the internationalisation literature the notion of path dependence has often been associated with gradualism in the evolution of a subsidiary in its host country. In this paper, we argue that path dependence cannot be exclusively associated with gradualism nor can the evolution of a particular subsidiary be explained solely by its embeddedness in its host environment. Instead, we propose that the internationalisation trajectory of units within a multinational corporation's network comprises a trajectory in time and space involving multiple, overlapping networks. Gradualism and discontinuities in the evolution of the units of a multinational enterprise are the outcomes of relational mechanisms interacting across different temporal and geographical contexts.

Suggested Citation

  • Araujo, Luis & Rezende, Sergio, 2003. "Path dependence, MNCs and the internationalisation process: a relational approach," International Business Review, Elsevier, vol. 12(6), pages 719-737, December.
    • Handle: RePEc:eee:iburev:v:12:y:2003:i:6:p:719-737
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    3. Sérgio Fernando Loureiro Rezende, 2006. "Multinationals and interdependence in internationalisation processes," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 10(spe), pages 9-31.
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