| Literature regarding the gains from internationalization is mixed and ambiguous. This may be because the previous literature ignores issues such as technological push and pull factors that attract foreign investment, industry competitiveness and rivalry among industry participants, the policy of host governments towards innovation, and the role of socioeconomic variables such as culture, political stability, and economic development. The significance of this study that it will account for these factors and provide evidence regarding how American MNCs can best enhance performance using domain and mission strategies.; The first essay discusses the factors determining FDI domain enhancement strategies. Issues such as the level of economic development, host policy towards innovation, managerial perceptions of the behavior of political participants, the level of technological advancement, and the establishment of economic integration schemes in a particular location are addressed. At the microeconomic level, the extent of product market diversification, innovative capacity, and profitability are examined to identify the effect of these factors on the location decision. The level of research intensity in a particular industry are examined so that technological factors in the home and host market are taken into account. The strategic issues relate to programs of FDI expansion of first mover advantages, order of entry, and spatial preemption are addressed. Finally, the essay looks at the effect of FDI domain strategies on post expansion, industry adjusted firm accounting performance.; The second essay examines the use of mode strategies for the purpose of foreign market entry, reputation enhancement, and international technology transfer in three specific industries with very high investments in proprietary assets. Furthermore, internationalization options have rarely been represented as a menu of mode strategies, including, but not limited to, foreign direct investment.; The third essay examines the ability of MNCs to internalize cultural barriers to global expansion. Whenever firms undergo an expansion into a different culture, they face unique issues related to work habits, managerial styles, and time referencing, among others. The mechanisms by which firms engage in expansions to culturally distant regions are examined as well, in terms of the use of culturally similar intermediary firms and sequencing of expansion through alternate mission strategies beginning with exporting and licensing, and programs of subsequent expansions. The culture-mode relationship is further examined in terms of issues such as interpersonal trust experienced when joint ventures in culturally distant regions take place. |
