Toward a Multi-Path Theory of Diversified International Expansion: The Case of Multinational Mobile Network Operators

Abstract

This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies expand into increasingly distant and dissimilar countries. According to this theory, multinational mobile network operators (MNOs) recover from over-diversified expansion by improving their local adaptation strategies by means of reconfiguring the value chain and entering local partnerships, by improving their global replication capabilities or by concentrating expansion to clusters of similar country markets. Three dynamic propositions are developed and exemplified concerning MNOs’ diversified international expansion. Implications for international diversification research finalize the chapter.

Citation

Elter, F. and Ulset, S. (2017), "Toward a Multi-Path Theory of Diversified International Expansion: The Case of Multinational Mobile Network Operators", Breaking up the Global Value Chain (Advances in International Management, Vol. 30), Emerald Publishing Limited, Leeds, pp. 189-213. https://doi.org/10.1108/S1571-502720170000030008