Internationalization Strategies Of Multinational Corporations: A Critical Review

Abstract

Internationalization has become a pivotal aspect of the strategic agenda for multinational corporations (MNCs) seeking growth, competitiveness, and sustainability in the global market. This critical review synthesizes existing literature on the internationalization strategies of MNCs, aiming to provide insights into the multifaceted approaches employed by these entities in expanding their operations across borders. Drawing upon a wide array of scholarly works, this paper delves into various theoretical frameworks and empirical studies to elucidate the factors influencing MNCs' internationalization strategies, including market-seeking, resource-seeking, efficiency-seeking, and strategic asset-seeking motives. Furthermore, it examines the role of institutional environments, cultural contexts, and firm-specific capabilities in shaping the internationalization pathways adopted by MNCs. Additionally, this review evaluates the significance of entry modes, such as mergers and acquisitions, joint ventures, greenfield investments, and strategic alliances, in facilitating MNCs' global expansion efforts. By critically analyzing the extant literature, this paper underscores the importance of a nuanced understanding of the complexities inherent in MNCs' internationalization strategies and calls for further research to explore emerging trends and dynamics in the global business landscape.