Sequential internationalization,heterogeneous process and subsidiary roles: the case of Hyundai Motor Company* |
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| Authors: | Chung-Sok Suh Yue Wang Myung Hyun Nam Xiao Zhang |
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| Institution: | 1. School of Management, Australian School of Business, University of New South Wales, Sydney, NSW 2052, Australia;2. Department of Marketing and Management, Faculty of Business and Economics, Macquarie University, Sydney, NSW 2109, Australia;3. Graduate School of Business, Hannam University, Daejon 306-791, South Korea;4. Department of Management, School of Business, Nanjing University, Nanjing, Jiangsu 210093, P.R. China |
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| Abstract: | This paper proposes a new conceptual model to better understand the internationalization process of firms, especially those from rapidly developing East Asian economies. The model is illustrated through a comprehensive analysis of the internationalization process of Hyundai Motor Company (HMC). A comparative case analysis of the development of HMC's five major foreign subsidiaries shows both capability building through sequential investment from the headquarters' perspective and heterogeneous development of operational knowledge at the subsidiary level. The research emphasizes the importance of the post-FDI phase of subsidiary development to the study of firm internationalization, and highlights the process of decision-making and learning as the key to understanding the sequence of investments in subsidiaries. |
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| Keywords: | East Asian multinationals Hyundai Motor Company knowledge flows sequential internationalization subsidiary development subsidiary roles |
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