Revisiting the theories of internationalization and foreign market entry mode: a critical review

Abstract

Scholars have given considerable attention to the development of the various theories of internationalization and foreign direct investment in order to explain the internationalization process and strategic directions of firms. However, there is no solid agreement between the different theoretical points of view to describe and predict the behaviour of firms during their international expansion process. This study attempts to offer a comprehensive analysis of the major theories related to the internationalization of firms. The research objectives are to investigate similarities and differences between various approaches, discuss their shortcomings, and provide some extension. Finally, a new theoretical framework of internationalization is proposed.