Internationalization Motives: Sell More, Buy Better, Upgrade and Escape

10 Pages Posted: 23 Mar 2017

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Rajneesh Narula

International Business and Strategy, Henley Business School

C. Annique Un

Northeastern University - International Business & Strategy

Date Written: January 26, 2015

Abstract

We review the motives for internationalization to clarify previous classification. We build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation or exploration of resources and a psychology-driven search of or avoidance of environmental conditions. These two dimensions result into four internationalization motives: Sell More, in which the company exploits existing resources and obtains better host country market conditions; Buy Better, in which the company exploits existing resources abroad and avoids bad home country conditions; Upgrade, in which the company explores for new resources and it obtains better host country conditions; and Escape, in which the company explores for new resources and avoids bad home country conditions.

Keywords: Internationalization, motives, behavioral economics

JEL Classification: F23

Suggested Citation

Cuervo-Cazurra, Alvaro and Narula, Rajneesh and Un, C. Annique, Internationalization Motives: Sell More, Buy Better, Upgrade and Escape (January 26, 2015). Available at SSRN: https://ssrn.com/abstract=2939444 or http://dx.doi.org/10.2139/ssrn.2939444

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

Rajneesh Narula

International Business and Strategy, Henley Business School ( email )

University of Reading
Reading, UT Berkshire RG6 6UD
United Kingdom
+44 (0)118 378 5247 (Phone)

HOME PAGE: http://https://www.henley.ac.uk/people/person/professor-rajneesh-narula/

C. Annique Un

Northeastern University - International Business & Strategy ( email )

Boston, MA 02115
United States

HOME PAGE: http://anniqueun.com/

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