Internationalization from a Small Domestic Base: An Empirical Analysis of Foreign Direct Investments of Icelandic Firms

Abstract

and Key Results: 0 iceland is like a black hole in the study of FDi from the Nordic countries; there is a gap in the literature about FDI from Iceland. This paper is the first empirical study that addresses the outward foreign direct investment of Icelandic firms. The purpose is to demonstrate how icelandic companies have invested abroad through foreign direct investments. 0 the overall objective of this paper is to describe the key characteristics of icelandic multinational corporations (MNcs) and to gain a deeper understanding of the internationalization processes of firms with a small domestic base. 0 Many icelandic companies have been investing heavily abroad over the last six years. some have acquired companies that are relatively larger than themselves, at least in terms of the number of employees. the main motive for this increase in foreign direct investments is access to a new market. the icelandic market is simply not large enough for companies to be categorized as medium or large companies in the global environment. What also supports this is that, as mentioned above, the outflow of FDI from Iceland was very low in the last century.

A Contingency Theory of Internationalization

“…therefore, we suggest in this study that the effect of trade liberalization on eM MNes' i-P link may not be as straightforward as previously thought, and it would be useful to analyze the effect of trade liberalization in further detail. Furthermore, many of the studies noted in table 2 are exploratory in nature and build on company case studies (e.g Benito et al 2002;Bengtsson 2000;laanti et al 2009;Oladottir 2009). Benito et al (2002) found, for instance, that firms based in open economies like Denmark, Finland, or Norway tend to internationalize more and are dependent more on international trade to compensate for their small domestic market size.…”

Chinese Outward Foreign Direct Investment Performance: The Role of Learning. 中国企业对外直接投资: 学习的角色

“…Empirical evidence is abundant regarding rapid internationalization processes (e.g., Oviatt & McDougall, ), frequent adoption of high‐commitment modes for initial international entry (e.g., Madsen & Servais, ), and leapfrogging over stages of internationalization (e.g., Hedlund & Kverneland, ). Although leapfrogging has been typically used to describe the internationalization process of born‐globals, international new ventures, and small‐ and medium‐sized enterprises (e.g., Oladottir, ; Oviatt & McDougall, ), we argue that the logic also applies to latecomers to the global market. In fact, leapfrogging behaviour by EM firms has been recorded in the international business literature (e.g., Young, Huang, & McDermott, ).…”

Var Adam ekki lengi í helvíti? Hafa stjórnunarhættir á Íslandi breyst eftir hrunið 2008?

“…Jafnframt jókst flaeði beinna erlendra fjárfestinga milli áranna 1997 og 2005 úr 5,2 milljörðum íslenskra króna í taeplega 442,2 milljarða (Seðlabanki Íslands, 2006). Þetta er naerri 85-föld aukning á aðeins 7 árum og fá fyrirtaeki sem stóðu að baki þessum fjárfestingum (Ásta Dís Óladóttir, 2009).…”

“…Erlendir aðilar sem áttu í viðskiptum við íslenska stjórnendur lýstu þeim á þann hátt að þeir hefðu einkenni frumkvöðla, vaeru vel menntaðir, athafnasamir, hugmyndaríkir, viljugir til að laera og þróast, fúsir til þess að dreifa ábyrgð, viljugir til að staekka fyrirtaeki sín og tilbúnir til þess að taka umtalsverða áhaettu (Ásta Dís Óladóttir, 2009).…”