The Art of Abandoning Ship
(2021) IBUH19 20211Department of Business Administration
- Abstract
- This study seeks to understand why and how Swedish MNE:s in the banking and
telecommunication sectors decide to de-internationalize from foreign markets. Specifically, this question is addressed by examination of the driving motives behind the decisions, and the relevance of escalation theory to the decision making process. Through a qualitative and exploratory research design, this study examines four companies that have conducted partial de-internationalization, exiting a variety of European and Asian markets. From each firm, two current or previous executives are interviewed.
The contribution of this thesis is threefold. First, the results show that de-internationalization decisions are multifaceted, conceptualized as dual-motive... (More) - This study seeks to understand why and how Swedish MNE:s in the banking and
telecommunication sectors decide to de-internationalize from foreign markets. Specifically, this question is addressed by examination of the driving motives behind the decisions, and the relevance of escalation theory to the decision making process. Through a qualitative and exploratory research design, this study examines four companies that have conducted partial de-internationalization, exiting a variety of European and Asian markets. From each firm, two current or previous executives are interviewed.
The contribution of this thesis is threefold. First, the results show that de-internationalization decisions are multifaceted, conceptualized as dual-motive de-internationalization. Thus, both the reactive and proactive influences of these decisions should be assessed to form a complete picture. Second, the theory of escalation of commitment is shown to be relevant for the examined decision processes, providing an extension of this theory to the internationalization processes of large MNE:s. Hence, managers are encouraged to consciously implement de-escalation strategies in the decision making processes of their firms. Lastly, a model for the interaction between escalation drivers, de-escalation strategies and de-internationalization
motives is suggested. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9047893
- author
- Eklund, Matilda LU and Manieri, Alexander LU
- supervisor
-
- Martin Blom LU
- organization
- alternative title
- De-internationalization and escalation of commitment in Swedish banking and telecommunication MNEs
- course
- IBUH19 20211
- year
- 2021
- type
- M2 - Bachelor Degree
- subject
- keywords
- de-internationalization, escalation of commitment, banking, telecommunication, multinational enterprise, internationalization
- language
- English
- id
- 9047893
- date added to LUP
- 2021-06-24 14:45:37
- date last changed
- 2021-06-24 14:45:37
@misc{9047893, abstract = {{This study seeks to understand why and how Swedish MNE:s in the banking and telecommunication sectors decide to de-internationalize from foreign markets. Specifically, this question is addressed by examination of the driving motives behind the decisions, and the relevance of escalation theory to the decision making process. Through a qualitative and exploratory research design, this study examines four companies that have conducted partial de-internationalization, exiting a variety of European and Asian markets. From each firm, two current or previous executives are interviewed. The contribution of this thesis is threefold. First, the results show that de-internationalization decisions are multifaceted, conceptualized as dual-motive de-internationalization. Thus, both the reactive and proactive influences of these decisions should be assessed to form a complete picture. Second, the theory of escalation of commitment is shown to be relevant for the examined decision processes, providing an extension of this theory to the internationalization processes of large MNE:s. Hence, managers are encouraged to consciously implement de-escalation strategies in the decision making processes of their firms. Lastly, a model for the interaction between escalation drivers, de-escalation strategies and de-internationalization motives is suggested.}}, author = {{Eklund, Matilda and Manieri, Alexander}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Art of Abandoning Ship}}, year = {{2021}}, }