Abstract
The growing phenomenon of emerging-economy firms investing abroad, particularly in the developed countries, calls for an in-depth study of their FDI motivations. This study builds upon several studies that suggest that capabilities-based approach is central to the theory of the MNE. Employing a case study approach, we examine the FDI motivations of Indian pharmaceutical firms in Ireland. Our analysis reveals that the FDI motivations of the firms are associated with their degree of internationalisation, and both are sequential as well as evolutionary in nature. Based on this study, we propose a four stage pyramid model of FDI motivations. The findings from this study have both theoretical and policy implications in relation to emerging-economy firms undertaking FDI.
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