IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxxiiiy2023i2p12-19.html
   My bibliography  Save this article

Multinational Companies as a Business Internationalization Driving Strategy: Implications for Competitive Advantage and Business Values

Author

Listed:
  • Anis Benabed

    (Bucharest University of Economic Studies, Doctoral School of Economics and International Business, Romania)

Abstract

This paper analyzes and presents Multinational Companies as a business Internationalization driving strategy with a focus on their implications for business values. The research methodology began with a literature review then there was a focus on data analysis and description. The research questions are “what are the characteristics of multinational companies for business internationalization?” And “what implications, reasons and goals are there?” Some of the results illustrated that multinational companies are very important for business internationalization since they are one of the main internationalization strategy but they may face some restrictions, losses or possible difficulties in negotiations abroad. Taxes and the unpredictable risks may make them an object to sudden losses. In conclusion, Internationalization has been so far a relevant step for companies and businesses to leave the difficulties of domestic narrow markets and similarities. Some business operations of multinational companies such as outsourcing, licensing, exports or FDIs should focus more on the contracting process and locations.

Suggested Citation

  • Anis Benabed, 2023. "Multinational Companies as a Business Internationalization Driving Strategy: Implications for Competitive Advantage and Business Values," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 12-19, December.
    • Handle: RePEc:ovi:oviste:v:xxiii:y:2023:i:2:p:12-19
    as

    Download full text from publisher

    File URL: https://stec.univ-ovidius.ro/html/anale/ENG/wp-content/uploads/2024/02/2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. A L Calvet, 1981. "A Synthesis of Foreign Direct Investment Theories and Theories of the Multinational Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 12(1), pages 43-59, March.
    2. Peter J. Buckley & Mark Casson, 2010. "Models of the Multinational Enterprise," Palgrave Macmillan Books, in: The Multinational Enterprise Revisited, chapter 7, pages 147-176, Palgrave Macmillan.
    3. Pietra Rivoli & Eugene Salorio, 1996. "Foreign Direct Investment and Investment under Uncertainty," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 335-357, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fisch, Jan Hendrik, 2008. "Internalization and internationalization under competing real options," Journal of International Management, Elsevier, vol. 14(2), pages 108-123, June.
    2. Jan Hendrik, Fisch, 2011. "Real call options to enlarge foreign subsidiaries - The moderating effect of irreversibility on the influence of economic volatility and political instability on subsequent FDI," Journal of World Business, Elsevier, vol. 46(4), pages 517-526, October.
    3. Li, Jing & Rugman, Alan M., 2007. "Real options and the theory of foreign direct investment," International Business Review, Elsevier, vol. 16(6), pages 687-712, December.
    4. Sels, A.T.H., 2006. "Foreign direct investment as an entry mode. An application in emerging economies," Other publications TiSEM 583ca9b5-1691-425d-8f77-0, Tilburg University, School of Economics and Management.
    5. Shujuan Ding & Dafei Chen, 2013. "Survival Analysis on the Timing of Foreign Banks into China from the Aspect of Traditional Real Option," Accounting and Finance Research, Sciedu Press, vol. 2(4), pages 1-11, November.
    6. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Lenos Trigeorgis & Jeffrey J. Reuer, 2017. "Real options theory in strategic management," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 42-63, January.
    7. Tailan Chi & Jing Li & Lenos G Trigeorgis & Andrianos E Tsekrekos, 2019. "Real options theory in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 525-553, June.
    8. Hommel, Ulrich, 2003. "Financial versus operative hedging of currency risk," Global Finance Journal, Elsevier, vol. 14(1), pages 1-18, May.
    9. Adugna Lemi & Sisay Asefa, 2009. "Differential Impacts of Economic Volatility and Governance on Manufacturing and Non-Manufacturing Foreign Direct Investments: The Case of US Multinationals in Africa," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(3), pages 367-395.
    10. Desbordes, Rodolphe, 2007. "The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis," International Business Review, Elsevier, vol. 16(6), pages 732-750, December.
    11. Rajdeep Grewal & Murali Chandrashekaran & F. Robert Dwyer, 2008. "Navigating Local Environments with Global Strategies: A Contingency Model of Multinational Subsidiary Performance," Marketing Science, INFORMS, vol. 27(5), pages 886-902, 09-10.
    12. Azzimonti, Marina, 2019. "Does partisan conflict deter FDI inflows to the US?," Journal of International Economics, Elsevier, vol. 120(C), pages 162-178.
    13. Elango, B., 2010. "Influence of industry type on the relationship between international operations and risk," Journal of Business Research, Elsevier, vol. 63(3), pages 303-309, March.
    14. Haider, Murtaza & Anwar, Amar, 2014. "Impact of terrorism on FDI flows to Pakistan," MPRA Paper 57165, University Library of Munich, Germany.
    15. Christian Bellak, 1999. "Explaining Foreign Ownership By Comparative and Competitive Advantage: Empirical Evidence," Department of Economics Working Papers wuwp062, Vienna University of Economics and Business, Department of Economics.
    16. Palmero, Alfredo Jiménez & Herrera, Juan José Durán & Sabaté, Juan Manuel de la Fuente, 2013. "The role of psychic distance stimuli on the East-West FDI location structure in the EU. Evidence from Spanish MNEs," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(1), pages 36-65.
    17. Amar Gande & Kose John & Vinay B. Nair & Lemma W. Senbet, 2020. "Taxes, institutions, and innovation: Theory and international evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1413-1442, December.
    18. Wooster, Rossitza B. & Blanco, Luisa & Sawyer, W. Charles, 2016. "Equity commitment under uncertainty: A hierarchical model of real option entry mode choices," International Business Review, Elsevier, vol. 25(1), pages 382-394.
    19. Françoise Hay & Christian Milelli, 2013. "The endless quest to strategic assets by Chinese firms through FDI: From Inward to Outward Flows," Working Papers hal-04141202, HAL.
    20. Levary, Reuven R. & Wan, Ke, 1999. "An analytic hierarchy process based simulation model for entry mode decision regarding foreign direct investment," Omega, Elsevier, vol. 27(6), pages 661-677, December.

    More about this item

    Keywords

    business internationalization; multinational companies; implications; strategy; values;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:xxiii:y:2023:i:2:p:12-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.