Internationalization motives: sell more, buy better, upgrade and escape

Cuervo-Cazurra, A., Narula, R. ORCID: https://orcid.org/0000-0002-4266-2681 and Un, C. A. (2015) Internationalization motives: sell more, buy better, upgrade and escape. Multinational Business Review, 23 (1). pp. 25-35. ISSN 1525-383X doi: 10.1108/MBR-02-2015-0009

Abstract/Summary

Purpose – The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification. Design/methodology/approach – The authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country conditions or avoidance of poor home country conditions. Findings – These two dimensions result in four internationalization motives: sell more, in which the company exploits existing resources at home and obtains better host country conditions; buy better, in which the company exploits existing resources abroad and avoids poor 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 poor home country conditions. Originality/value – This theory-driven classification provides predictive power for future analyses of internationalization motives.