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2013 (Vol. 5, Issue: 22)
Article Information:

A Study on the International Diversification Motives of Multinational Corporations

Ling Hu and Lyhorn Moeun
Corresponding Author:  Ling Hu 

Key words:  International diversification, Internationalization, Resource-based view, Upper echelon, , ,
Vol. 5 , (22): 5297-5302
Submitted Accepted Published
November 08, 2012 December 21, 2012 May 25, 2013
Abstract:

The study tends to discover what drive Multinational Corporations (MNCs) to expand its international markets. Drawing on previous research and extant theories, this study will propose some conspicuous motives-top management team, host country endowment and firm-unique resource. The study discovers that top management team such as top executives, managers, boards of directors and owners have significantly influence MNCs to expand its business across border. Reviewing a wide range of literature in management and related fields, it is indicated that host country endowment has played a crucial role in spurring MNCs to go overseas markets. Another important actor encouraging MNCs to diversify its markets beyond borders is its ownership advantage of unique resource. A theoretical model, triangle-motive of international diversification, is developed to advance that the above mentioned motives do influence MNCs to internationally diversify its operating activities.
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  Cite this Reference:
Ling Hu and Lyhorn Moeun, 2013. A Study on the International Diversification Motives of Multinational Corporations.  Research Journal of Applied Sciences, Engineering and Technology, 5(22): 5297-5302.
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ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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