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Networks and internationalisation: the case of multinational corporations entering Ukraine

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  • Bridgewater, Susan

Abstract

The explanatory power of economics-based theories incrementalism and network theory are studied in the cases of four Multinational Corporations in Ukraine. All are concerned to protect monopolistic advantages against the uncertainty of Ukraine. Clustering of entry timing supports oligopolistic reaction theory. Three firms use high investment entry modes expected by internalisation, although one firm of equal size and degree of internationalisation uses the low investment mode expected by incrementalism. Network theory provides an understanding of the web of relationships in which the firm is embedded. Previous government-controlled relationships in Ukraine have broken down. The risks accepted by household consumables firms trying to penetrate Ukrainian networks are much greater than those of financial services firms who are serving international customers and regulators from more stable economies.

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  • Bridgewater, Susan, 1999. "Networks and internationalisation: the case of multinational corporations entering Ukraine," International Business Review, Elsevier, vol. 8(1), pages 99-118, January.
    • Handle: RePEc:eee:iburev:v:8:y:1999:i:1:p:99-118
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    3. Blomstermo, Anders & Eriksson, Kent & Lindstrand, Angelika & Sharma, D. Deo, 2004. "The perceived usefulness of network experiential knowledge in the internationalizing firm," Journal of International Management, Elsevier, vol. 10(3), pages 355-373.
    4. Fiona Kun Yao & Ming-Jer Chen & Jiatao Li & Danielle Combs & Qiang Li, 2024. "A review of 50 years of research since Knickerbocker (1973): competitive dynamics in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(5), pages 522-550, July.
    5. Eriksson, Kent & Jonsson, Sara & Lindbergh, Jessica & Lindstrand, Angelika, 2014. "Modeling firm specific internationalization risk: An application to banks’ risk assessment in lending to firms that do international business," International Business Review, Elsevier, vol. 23(6), pages 1074-1085.
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    7. Kyj, Myroslaw J. & Kyj, Larissa, 2009. "An institution-stakeholder framework for examining business relationship dynamics in a transforming Eastern Europe," Journal of World Business, Elsevier, vol. 44(3), pages 300-310, July.
    8. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
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