International Business Strategies at Ferranti, 1907–75: Direction, Management and Performance

Abstract

After experiencing a major liquidity crisis in 1903, Ferranti embarked on an ambitious marketing strategy which not only resulted in the establishment of an extensive agency network, but also laid the foundations for the creation of a multinational operation, especially in Canada. By examining the fortunes of this Canadian subsidiary, and placing it in the context of general British multinational development, it is possible to challenge the theoretical work of international business specialists like Dunning, Buckley and Casson. In particular, while it is clear that Dunning's ‘eclectic paradigm’ can help to explain why Ferranti embarked on this strategy, a range of other influences was clearly apparent, including family predilections and local managerial and governmental pressures. This brings into question the general applicability of theoretical frameworks when explaining British multinational expansion, focusing interest on the need for more effective empirical research.