Post-Entry Internationalization: Managing the Dynamics of Business Networks Development

Abstract

This thesis aims to examine how multinational corporations manage business network expansion during the post-entry internationalization process in response to different determinants and changing expansion dynamics. The emphasis is placed on understanding how MNCs´ business network development is shaped by different external and internal factors. Internal capabilities, institutional conditions, geopolitical instability and business network integration affect how firms manage business network expansion during the post-entry internationalization phase. The thesis was conducted through a qualitative methodological approach and semi-structured interviews were used to collect the empirical material. Six multinational corporations participated in the study and nine interviews were conducted, in some cases with different respondents within the same company. The study reveals that multinational corporations manage business network expansion in the post-entry internationalization process through continued development of international presence and network relationships. This expansion can be carried out through acquisitions and the establishment of local operations in foreign markets. Trust, competence and relationship maintenance are some important indicators that shape firms business network development after initial market-entry. Taken together, the research indicates that firms post-entry business network expansion is a dynamic and relationship based process.