Extent: 5 ECTS (135 h)
Timing: 2nd – 5th semester
Type: Free choice studies
The objective of the course is to introduce students to the main theories of firm internationalization and globalization. Special emphasis is given to explaining the progression of theories, the contextual variables shaping their development, and their managerial implications. Students are expected to demonstrate an ability to critically evaluate the theories and to apply them to analysis of firm cases.
- Concept of International Business and theory
- Vernon and the product life cycle
- Foreign direct investment and Internationalization
- FDI flows and changes in the global economy
- OLI paradigm to explain foreign direct investments
- Foreign direct investment as an internationalization mode
- Stages of Internationalization & Operation Modes
- The stages model of internationalization
- Micro and macro level (centripetal and centrifugal) factors
- Foreign operation modes (Franchising, Licensing, Management contracts, International subcontracting, Project Operations, Exporting)
- Globalization and firm internationalization processes
- Born global theory as a way to explain recent firm internationalization behavior
- Global vs. international vs. local strategy
- Business Networks and Internationalization
- What are strategic alliances?
- Alliance and network management
- Network perspective to internationalization
- Management of global operations and managing the multinational: an overview of the evolution of strategic management thinking
Cooperation with the business community
The course is arranged in cooperation with Aalto University School of Economics
Teaching and learning methods
Independent studies (Distance assignment, presentations, learning diary) 99 h
Self-assessment of learning 1 h
Accreditation of prior learning (APL)
Accreditation of prior learning (APL) is observed on the course according to separate instructions.
Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management. pp. 17, 99–120.
Benito, G., Larimo, J., Narula, R. & Pedersen, T. 2002. Multinational Enterprises from Small Economies. International Studies of Management and Organization. 32(1): 57-78.
Buckey, PJ. & Gharui, PN (Eds.) The Internationalization of the Firm. p. 303-321.
Dicken, P. 2007. Global Shift, Mapping the Contours of the World Economy, Chapters 1-2
Dunning, J. 1988. Trade, Location of Economic Activity and the Multinational Enterprise: A Search for an Eclectic Approach in J.H Dunning Explaining International Production. London. Unwin Hyman, p. 13-40.
Doz, Y. and Kosonen, M. 2008. The Dynamics of Strategic Agility: Nokia’s Rollercoaster Experience, California Management Review. 50(3), p. 95-118
Johanson, J. & Mattsson, L.-G. 1988. Internationalization in industrial systems: a network approach.
Johanson, J. & Vahlne, J-E. 1977. The Internationalization Process of the Firm – A Model of Knowledge Development and Increasing Foreign Market Commitments. Journal of International Business Studies. 8(1): 23-32.
Oviatt, B. & McDougall, P. 2005. Toward a Theory of International New Ventures, Journal of International Business Studies. 36, p. 29-41.
Porter, M.E. 2008. The Five Competitive Forces that Shape Strategy. Harvard Business Review. 86 (1), p.78-93.
Vernon, R. 1966. International Investment and International Trade in the Product Cycle. The Quarterly Journal of Economics. 80 (2): 190-207.
Yip, G. 2003. Total Global Strategy. Chapters 1-2
Firm Internationalization assignment 35%
Learning diary 35%
The assessment of one's own learning does not influence the course grade. The assignment is the same for all courses/modules and the answers will also be used for course/module development. The assignment is completed on an E-form.