ABSTRACT   Date: [2023-05-30] Level:  Bachelor Thesis in Business Administration, 15 cr  Institution: School of Business, Society and Engineering, Mälardalen University  Authors:  Naiymie Binta Arman   Miriam Lini       (00/02/27)    (02/05/06) Title:    Navigating the Challenges of International Business: An Analysis of     Factors Influencing the Exit of Multinational Corporations. Supervisor:    Edward Gillmore  Keywords:    Multinational Enterprises, Market Exit, Transaction Cost Theory,      Institutional Theory, Isomorphism, Legitimacy, Entry modes      (internationalization), Exit modes, Institutional distance, Institutional &     Infrastructural hassle factors  Research question:   What are the internal and external characteristics that drive market exit?  Purpose:    The aim of this study is to investigate the internal and external factors that contribute to the exit of MNEs from foreign markets, and to provide insights for firms operating in foreign markets. Problematization:   The scarcity of research on the predominant factors influencing the exit of     MNEs from established foreign markets highlights the need to understand effective strategies for minimizing financial losses and preserving reputation. Method:   Qualitative research paper; Thematic analysis using semi-structured interviews and secondary data.  Conclusion:    The researchers aimed to explore the factors driving market exit for     Multinational Enterprises (MNEs). They identified internal factors such as financial performance, lack of proper financial guidance, and inadequate resource allocation as key drivers for Company X's market exit. External factors included economic differences, high competition, and regulatory constraints in the Swedish market, leading to contract termination for     Company X.

Micro-multinational is a relatively new term and there are still very few studies about how micro-multinationals choose their foreign entry market modes when internationalizing. This thesis attempts to add new knowledge filling the gap between the internal resources of a company and the foreign entry market mode selected for its internationalization process. Furthermore, a systematic methodology that combines internal resources with the selection of the foreign entry market mode will be developed with the goal of aligning the competitive advantages of the company along its international structure. The methodology that this research employs will show how to combine the internal resources of the case study company and its needs when internationalizing based on the characteristics of each foreign entry market mode. The first step of the methodology is determining the variables that categorize each foreign entry market mode that companies implement. Then, the application of the Resource-based View will show the possible competitive advantages of the case study company. Lastly, accounting for the requirements that the case study company has when internationalizing, the possible competitive advantages, derived from the Resource-based View, will be combined with the characteristics of each foreign entry market mode to determine effective recommendations for the case study company to implement in its internationalization strategy. The results of this research show that when a company wants to enter into a foreign market, it should evaluate that decision based on its internal resources. Only then will the company be able to exploit its competitive advantages and be successful in the new market. The decision to internationalize is influenced by requirements such as the level of control, commitment, risk and flexibility that the parent company is willing to have in the new foreign market. Hence, these requirements must be taken into consideration carefully during the entire decision process. / Micro-multinationals är en relativt ny term och det finns för tillfället få studier kring hur dessa företag ska bedriva sin utlandsexpansion när de internationaliserar verksamheten. Syftet med denna uppsats är att bidra med ny kunskap kring ämnet och medverka till att fylla kunskapsgapet som existerar i hur man kombinerar företagets interna resurser och valet av internationaliseringsstrategi. Vidare utvecklas en systematisk metodologi som kombinerar interna resurser med valet av internationaliseringsstrategi för att anpassa företagets konkurrensfördelar med dess internationaliseringsprocess. Metodologin som används i denna rapport visar hur interna resurser hos företaget i den aktuella fallstudien kan kombineras med dess behov för internationalisering baserat på egenskaperna hos varje enskild typ av utlandsexpansion. Första steget i metodologin är att avgöra vilka variabler som karaktäriserar varje enskild strategi för utlandsexpansion som företag planerar att implementera. Nästa steg är att applicera en “Resource-based View” som visar de möjliga konkurrensfördelarna för företagen i fallstudien. Slutligen kombineras kraven som företagen har ställt för sin internationalisering samt de konkurrensfördelar som de visades ha enligt “esoruce-based view” med de olika typerna av utlandsexpansion som finns tillgängliga med syftet att avgöra lämpliga rekommendationer för fallstudieföretagen rörande hur de ska gå till väga i sin internationalisering av verksamheten. Resultaten visar att när ett företag vill etablera sig på en utländsk marknad bör de evaluera beslutet med hänsyn till sina interna resurser. Först då kan företaget utnyttja sina konkurrensfördelar och bli framgångsrika på den nya marknaden.  Beslutet av hur internationaliseringen ska gå till påverkas av krav som moderbolaget har för den nya marknaden såsom behov av kontroll, grad av åtagande, risk och flexibilitet. Dessa krav måste tas i noggrann beaktning under hela beslutsprocessen.

The subject of internationalization of Born Global small and medium-sized enterprises (SMEs) that start cross-border business operations shortly after the company’s foundation has received growing scholarly attention in the last decades. Although the research of the influence of the market knowledge - information a firm has about a specific foreign market, on internationalization decisions was developing rapidly to account for the challenges of the established internationalization theories, multi-factor comprehensive analysis of the influence of all the interlinked factors of the market knowledge remains overlooked by research. Therefore, the main purpose of this thesis is to contribute to the understanding of the impact of foreign market knowledge on the decisions of business-to-business (B2B) Born Global SMEs regarding when, where to, and how to internationalize, and concerning the ways of operating in the foreign market(s). To fulfill the purpose of the paper, the authors carried out a qualitative multiple case study with six Born Global SMEs working in the deep tech industry which has started international operations up to one year after the establishment. Fieldwork consisted of 14 virtual interviews with the Marketing Managers and Founders of the firms. The results of this study show that the process through which the studied B2B Born Global SMEs internationalize is very similar among all companies: it starts between a few weeks up to one year after the inception of the company, and it follows a typical progressive process (first, the firms have one of their employees or external representatives physically going to the foreign market of interest; then establish the partnerships with local companies; later appoint a local representative to the market, and lastly establish a subsidiary company). Next, the research illustrates that the studied Born Global SMEs acquire foreign market knowledge from external parties by the method of grafting. Furthermore, the study also concluded that there are three groups of factors of the foreign market, which are categorized based on the firms’ perception of the factors’ influence on decisions of B2B Born Global SMEs about when, where to, and how to internationalize. These groups are: important (economic opportunities, networks, political context), disregarded (language, culture, and legal regulations) and overlooked (political context, legal regulations, and language) factors. Lastly, such foreign market knowledge factors were found to influence the decisions of B2B Born Global SMEs’ about ways of operations in the foreign market(s): political situation, economic opportunities, and legal regulation impact the companies’ decisions about operations in the foreign market(s).

Multinational corporations (MNCs) encounter intricate challenges as they expand their global presence, which demands strategic decision-making. The selection of an entry mode significantly impacts various aspects of a firm's operations, stakeholder relationships and long-term performance. This thesis focuses on Swedish companies entering the US market to investigate how Internal Factors and Host Country Conditions shape entry mode strategies. The primary objective is to deepen the understanding of interactions between internal firm demands and external conditions when evaluating entry mode choices. The study considers Internal Factors such as dissemination risk, control, and resource commitment, as well as Host Country Conditions including culture, market attractiveness, legal environment, and uncertainty. The key findings highlight a discrepancy between the recommended entry modes in each category, emphasizing the importance for firms to assess the relative significance of each category and prioritize one over the other. This approach enables firms to gain a clearer understanding of how to effectively enter the market.

This paper investigates the links between institutional systems and the entry mode of Multinational Corporations (MNCs) in developing and transition countries (DTCs). An assessment is made of the reasons for the continuing use of international joint ventures (IJVs) in countries that have undergone reforms intended to lead to the development of wholly owned subsidiaries. The paper argues that formal and informal institutional constraints in DTCs lead to high transaction and uncertainty costs for MNCs, and that the use of IJVs is a rational response to attempt to lower these high costs. The paper follows the literature suggesting that IJVs are normally a `second best¿ entry mode in terms of the potential for foreign direct investment (FDI) to contribute to the development of DTCs. The reform process in Jordan is used to illustrate how institutional systems, especially informal institutional constraints, lead to high transaction and uncertainty costs. In the case of Jordan, this occurred despite a series of four reform packages seeking to reduce the institutional barriers to effective business activities. Interviews of 28 foreign companies provide the basis for an empirical assessment of the importance of both formal and informal institutional constraints and infrastructure problems. The paper includes an outline of a future research agenda that seeks to generalise and develop the results from Jordan to other DTCs.

Submitted by Silvana Teresinha Dornelles Studzinski (sstudzinski) on 2016-07-15T15:44:58Z No. of bitstreams: 1 Diana Indiara Ferreira Jardim_.pdf: 1813573 bytes, checksum: 652d3ceb38f92055404f6a8ea2834105 (MD5) / Made available in DSpace on 2016-07-15T15:44:58Z (GMT). No. of bitstreams: 1 Diana Indiara Ferreira Jardim_.pdf: 1813573 bytes, checksum: 652d3ceb38f92055404f6a8ea2834105 (MD5) Previous issue date: 2016-04-27 / Nenhuma / Esta pesquisa procurou mapear os cenários que se desenvolverão nos próximos dez anos no mercado hospitalar brasileiro, considerando o ambiente institucional do País a partir da mudança da Lei nº 8.080/1990, art. 23, que permitiu, em janeiro de 2015, investimento externo direto em serviços de assistência à saúde. Foi realizado um painel de experts com 13 representantes de projeção nacional dos grupos de hospitais, operadoras, governo, trabalhadores da área de saúde e investidores estrangeiros. A partir destas informações, foram construídos cenários, por meio de uma survey para uma amostra de 134, em que atores da área de saúde brasileira indicaram o grau de probabilidade de cada variável, para a construção final dos cenários prospectivos. Os principais resultados de estudo indicam que a complexidade do mercado hospitalar será o maior desafio para o investidor estrangeiro. Não há sinais de barreiras que impeçam o investimento de estrangeiros em hospitais, entretanto, não se sabe se haverá algum tipo de regulação e qual órgão será responsável. Os modos de entrada que serão utilizados pelos investidores de capital estrangeiro será joint venture, em um primeiro momento, e alguns investimentos de brownfield, ou aquisição. Entretanto, todos prezam por cautela e têm comprometimento gradual, atuando, principalmente, em cidades com alto PIB per capita e com forte atuação da saúde suplementar. / This research attempts to map the probable scenarios that may develop over the next ten years in the Brazilian hospital market, considering the institutional environment of the country from the Law change No 8080/1990, art. 23, which allowed in January 2015, foreign direct investment in health care services. This research was released to a panel of experts comprised of 13 national representatives of Hospitals groups, operators, government, health workers and foreign investors. The information derived from this panel, scenarios were built and submitted through a survey to a sample of 134 stakeholders who indicated the probability of each variable to the final constructor of prospective scenarios. The main results of the study indicate that the complexity of the hospital market will be the biggest challenge for the foreign investor. Currently, there are no signs of barriers that would prevent foreign investment in hospitals, however, in the future, whether there will be regulations and which agency will be responsible. The entry modes adopted by foreign equity investors will be joint venture with Brazilian companies at first, then, potentially brownfield investments, or acquisitions. Investments will be implemented gradually, mainly in cities with high GDP per capita and strong performance of private health insurance companies.

Made available in DSpace on 2010-04-20T20:20:21Z (GMT). No. of bitstreams: 1 68070200630.pdf: 334021 bytes, checksum: e558792e8bd815db3a344eebf837a170 (MD5) Previous issue date: 2009-12-08T00:00:00Z / A internacionalização é um tema de interesse crescente. O aumento do volume de transações internacionais é acompanhado por um crescente volume de estudos acadêmicos sobre o tema de internacionalização. As teorias desenvolvidas tratam de explicar os critérios analisados pelas empresas para a definição de suas estratégias de internacionalização, a definição de modalidades de entrada e os desafios que as empresas enfrentam em seus movimentos de internacionalização. Estas teorias podem ser aplicadas para o estudo do mercado de integração de sistemas de tecnologia de informação e comunicação (TIC). O mercado de TIC vem apresentando grandes taxas de crescimento e continua com perspectivas de crescimento, sendo que neste contexto, a internacionalização é uma alternativa estratégica importante. A realização de um estudo de caso permitiu a análise dos movimentos de internacionalização de uma empresa brasileira de integração de sistemas de TIC, sob os aspectos de estratégia, modalidade de entrada e desafios de internacionalização. O estudo das teorias e o estudo de caso permitiram a visualização da aplicação das teorias na prática, bem como especificidades que as teorias não cobrem. O desenvolvimento do trabalho pode servir como referência para o aprofundamento das teorias de internacionalização e também como referência para outras empresas do setor para o entendimento do processo. / Internationalization is a subject with increasing interest. The growth in international business volume is followed by a growing number of researches about internationalization. The developed theories try to explain analysis and the criteria considered by companies in its internationalization strategies, entry modes and liability of foreignness. These theories can be applied to study the market of systems integration of information and communication technology solutions (ICT). The ICT market is growing fast and also has positive growth perspectives, and internationalization is an important strategic approach for the companies in that sector. The development of a case study of a Brazilian company of ICT systems integration analyzed strategy, entry modes and liabilities of foreignness. The theoretical review and case study allowed the analysis of application of the theories in real situations and identification of specific issues for the ICT systems integration market. The development of this research may work as a reference for further studies in the subject and for other companies in ICT market for a better understanding of the process.

Notre recherche porte sur les pratiques de GRH transférées par les maisons mères vers leurs filiales étrangères. Pour cela, nous étudions les impacts de trois niveaux de facteurs (pays, organisation et individus) affectant le processus de transfert des pratiques de GRH dans les multinationales. Nous vérifions l’effet des différences cultuelles, des interactions institutionnelles, du mode d’entrée et les rôles des expatriés sur ce transfert. Notre recherche repose sur l’étude de cas de huit filiales multinationales françaises implantées en Chine. Nos résultats montrent que les filiales françaises ont tendance à adopter massivement les pratiques des maisons mères. Plus que les différences culturelles, les interactions institutionnelles et les modes d’entrée déterminent le transfert des pratiques de GRH à l’international. En même temps, nous vérifierons les rôles des expatriés dans la procédure de transfert. / Our research investigates the transfer of HRM practices from parent companies to their overseas subsidiaries. We seek to figure out how three levels of factors (country, organization and individual) from host country affect the international transfer process. We identify the effects of cultures, institutional interactions, entry modes and expatriates on this transfer. Based on detailed case studies of the eight French MNCs in China, we explain how transfer of HRM practices is realized. Our empirical findings indicate that French subsidiaries tend to adopt home-country HRM practices to a considerable extent. More than cultural differences, institutional interactions and entry modes are the main restraints for the transfer of HRM practices. Meanwhile, we identify the role of expatriates in the transfer process.

Submitted by Vinicius Pereira (viniciuss56@gmail.com) on 2013-09-12T13:41:13Z No. of bitstreams: 1 Tese_Vinicius.pdf: 1188639 bytes, checksum: fa3f685e633674f7a7886ce3aa74e703 (MD5) / Approved for entry into archive by Suzinei Teles Garcia Garcia (suzinei.garcia@fgv.br) on 2013-09-12T13:55:27Z (GMT) No. of bitstreams: 1 Tese_Vinicius.pdf: 1188639 bytes, checksum: fa3f685e633674f7a7886ce3aa74e703 (MD5) / Made available in DSpace on 2013-09-12T14:34:31Z (GMT). No. of bitstreams: 1 Tese_Vinicius.pdf: 1188639 bytes, checksum: fa3f685e633674f7a7886ce3aa74e703 (MD5) Previous issue date: 2013-08-02 / This thesis examines three gaps that have not been discussed in the literature. The gaps relate to the effects of internationalization on capital structure and ownership structure of multinational companies. Therefore, three essays about the effects of internationalization were prepared. The first essay examined the effects of entry modes on debt, the second the effects of internationalization in the forms of indebtedness and the third the effects of internationalization on the ownership structure. Data form domestic and multinational publicly traded companies in Latin America from 2007 to 2011 were assembled into panel data with test and control variables for each essay. The results of the first essay indicate that the entry modes are relevant to determine the debt level of multinational and complement the studies based on upstream-downstream hypothesis. It also showed that companies with equity entry modes tend to be more indebted in the total and long term than companies with non-equity entry modes, reinforcing explanations given by the static trade-off theory, and less indebted in the short term, urging agency and pecking order theories. The results of the second essay show that the degree of internationalization: (i) increases the debt level of almost all debts provided by financial agents (banks), as hypothesized upstream-downstream and reduce the debt provided by non-financial (trade-credit), as suggested by the theory of financial constraint, (ii) has no effect on debt maturity (iii) different than expected, does not increase debt via national development bank (encouraged loans), (iv) was relevant to change the composition of indebtedness of multinationals compared to domestic firms and (v) the entry modes on internationalization does not affect the composition of debt. In the third essay, the main finding result was that the most internationalized companies and equity entry mode have lower levels of ownership concentration. Another important result of the third essay was that there is an unexplored simultaneity in determining the level of internationalization and concentration of ownership. Both the results of the third essay are supported by the Resource Based View countering the traditional view of agency theory. / Esta tese analisa três lacunas que ainda não foram discutidas na literatura. As lacunas dizem respeito aos efeitos da internacionalização na estrutura de capital e de propriedade de empresas multinacionais. Para tanto, três ensaios sobre os efeitos da internacionalização foram elaborados. O primeiro analisou os efeitos dos modos de entrada sobre o endividamento; o segundo os efeitos da internacionalização nas formas de endividamento e o terceiro os efeitos da internacionalização na estrutura de propriedade. A partir de dados de empresas multinacionais e domésticas de capital aberto latino-americanas de 2007 a 2011, foram montados painéis de dados com variáveis de teste e controle para cada ensaio. Os resultados do primeiro ensaio apontam que os modos de entrada são relevantes para determinar o nível de endividamento das multinacionais e complementam os resultados de trabalhos baseados na hipótese upstream-downstream. Evidenciou-se também que empresas com modos de entrada patrimoniais tendem a ser mais endividadas no longo prazo e total que empresas com modos de entrada não-patrimoniais, reforçando explicações dadas pela teoria do static trade-off; e menos endividadas no curto prazo, reforçando as explicações das teorias da agência e pecking order. Os resultados do segundo ensaio apontam que o grau de internacionalização: (i) aumenta o nível de endividamento da quase totalidade das dívidas providas por agentes financeiros (bancos), conforme a hipótese upstream-downstream e diminuem as dívidas providas por agentes não-financeiros (trade-credit), conforme teoria da restrição financeira; (ii) não produz efeitos sobre a maturidade das dívidas (iii) diferente do que esperava, não aumenta endividamento via banco nacional de desenvolvimento (empréstimos incentivados), (iv) foi relevante para alterar a composição do endividamento das multinacionais se comparada às empresas domésticas e (v) a forma de entrada na internacionalização não afeta a composição de endividamento. No terceiro ensaio o principal resultado encontrado foi que as empresas mais internacionalizadas e com modo de entrada patrimonial têm menores níveis de concentração de propriedade. Outro importante resultado do terceiro ensaio foi de que há uma simultaneidade ainda não explorada em estudos anteriores na determinação do nível de internacionalização e da concentração de propriedade. Ambos os resultados do terceiro ensaio estão amparados pela Visão Baseada em Recursos contrapondo a visão tradicional da teoria da agência.