Do ‘New’ Multinationals Behave Differently from ‘Old’ Multinationals? --- An Examination of Internationalization of Sinopec Group and Royal Dutch Shell

SHEN, JIAMIN (2011) Do ‘New’ Multinationals Behave Differently from ‘Old’ Multinationals? --- An Examination of Internationalization of Sinopec Group and Royal Dutch Shell. [Dissertation (University of Nottingham only)] (Unpublished)

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Internationalization of firms has become a prominent phenomenon following the ever deepening process of economic globalization. The emergence of new multinational enterprises (MNEs) in particular has significantly reshaped the international business landscape and thus has attracted increasing attention of scholars, practitioners and policy makers. Employing a theoretical framework that integrates resource-based view, institutional-based view, and industry-based view, this dissertation aims to discover the distinctive internationalization behaviour of new MNEs in the context of conventional MNEs. More specifically, the dissertation examines the differences in internationalization behaviour between ‘new’ and ‘old’ MNEs with respect to internationalization speed, international expansion path and entry mode choices. The study employs case study approach and uses Royal Dutch Shell and Sinopec Group as examples.

A number of interesting findings emerge from this study. First, the differences of competitive advantages combining with diverse motivations of internationalization between ‘new’ and ‘old’ MNEs lead to their divergences of internationalization speed, expansion path, and entry modes. Specifically, although being inferior in competitive advantages the ‘new’ MNEs simultaneously entry developing and developed countries in an accelerated speed mainly through acquisitions. Differently, relying on competitive advantages especially advanced technology, the ‘old’ MNEs gradually expand abroad in a simple path by establishing wholly-owned subsidiaries. Second, on the basis of Peng’s model, the case study highlights the role of institutional-based view and resource-based view in both home-country and host-country context to explain the internationalization behaviour of ‘new’ and ‘old’ MNEs. Particularly, the institutional factors in host countries significantly impact the internationalization of old MNEs (the old MNEs initially establish joint ventures with local partners to overcome the uncertainty or volatility but divert to wholly-owned subsidiaries to prevent the knowledge leakage in host countries especially emerging economies). The influences of institutional factors in home countries are more prominent on ‘new’ MNEs than ‘old’ MNEs (the new MNEs may take advantage of state ownership advantage or government support to further their internationalization). Third, the dissertation also tests the empirical theories whereby Uppsala Model is challenged in explaining the internationalization of new MNEs but Peng’s model (the emphasis of institutional-based view) is generally consistent with the internationalization behaviour of ‘new’ and ‘old’ MNEs.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 26 Apr 2012 08:17
Last Modified: 16 Oct 2016 08:06

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