Toward a Multi-Path Theory of Diversified International Expansion: The Case of Multinational Mobile Network Operators

Abstract This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies expand into increasingly distant and dissimilar countries. According to this theory, multinational mobile network...

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Bibliographic Details
Published inBreaking up the Global Value Chain Vol. 30; pp. 189 - 213
Main Authors Elter, Frank, Ulset, Svein
Format Book Chapter
LanguageEnglish
Published Emerald Publishing Limited 01.01.2017
Subjects
International Business
Strategy
transnational theory of the firm
multi-path theory of diversified international expansion
Multinationality research
three-stage theory of international expansion
transaction cost theory of the multinational firms
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Summary:Abstract This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies expand into increasingly distant and dissimilar countries. According to this theory, multinational mobile network operators (MNOs) recover from over-diversified expansion by improving their local adaptation strategies by means of reconfiguring the value chain and entering local partnerships, by improving their global replication capabilities or by concentrating expansion to clusters of similar country markets. Three dynamic propositions are developed and exemplified concerning MNOs’ diversified international expansion. Implications for international diversification research finalize the chapter.
ISBN:1787430723
9781787430723
ISSN:1571-5027
DOI:10.1108/S1571-502720170000030008