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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

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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