Rapid internationalisation and performance: Is the sky the limit?

During this Breakfast Briefing on 12 September 2017, Dr Raquel Garcia-Garcia, Lecturer in Strategic Management at The Open University Business School, discussed "Is the sky the limit?" for the internationalisation of businesses.

Multinationals have traditionally expanded abroad slowly and gradually, moving from neighbouring countries to more distant ones. In fact, this internationalisation model prevailed in the international economic landscape during much of the 20th century. However, in recent years some multinationals have managed to defy this traditional pattern of international expansion by expanding abroad at a dizzying speed and being successful in doing so.

This phenomenon poses several questions: can all companies profit from a rapid foreign expansion? Or only just a few chosen ones? Is the sky the limit or is there an optimal speed of internationalisation? What are the factors that support/hinder a profitable rapid foreign expansion? This briefing addressed these key questions and provided insightful findings regarding the effect of knowledge on the success of multinationals.