Abstract
This article deals with interdependence and the internationalisation process of multinationals (MNCs); a topic that has received scarce attention in the literature (e.g. Bell & Young, 1998; Holm et al., 1995). By reviewing the literature on behavioural models of internationalisation, initially, the article suggests that MNCs should be regarded as loosely coupled systems in which independence and interdependence of operations shape how MNCs evolve and organise activities across borders. Subsequently, the article models the internationalisation process of MNCs by highlighting three dimensions that characterise their pattern of evolution - uniformity, direction and rhythm, and lays out three hypotheses on the relationship between these dimensions and interdependence. The direction of the relationship is suggested to be negative, i.e., other things being equal, interdependence is negatively related to uniformity, direction and the rhythm of the internationalisation processes. The article concludes by claiming that the internationalisation of MNCs results from an intricate combination of independent, yet interdependent, internationalisation processes that evolve in various spatial and temporal contexts within the MNC network.
Highlights
Behavioural models of internationalisation are concerned with the processes as well as the outcomes of international expansion (Aaharoni, 1966; Johanson & Vahlne, 1977)
In this article we address the interdependence of internationalisation processes within the MNC network
Scholars such as Johanson and Vahlne (1990) and Mattsson (1998) have claimed that interdependence between markets is a critical dimension of internationalisation processes, little research has examined this issue in detail
Summary
Behavioural models of internationalisation are concerned with the processes as well as the outcomes of international expansion (Aaharoni, 1966; Johanson & Vahlne, 1977). A focus on process rather than the mix of variables that produce particular outcomes means that internationalisation must be understood in the context of the paths undertaken by firms to reach their current international status (Vermeulen & Barkema, 2002). It is suggested that the internationalisation process of the firm results from the interplay between knowledge of and market commitment to a particular foreign market (Johanson & Vahlne, 1977).
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