Internationalization of Indian Companies Impact of Organizational Factors

Abstract

India s evolution in growth and nature of outward foreign direct investment newline(OFDI), in the context of internationalization of developing economies, holds utmost significance, as it has emerged as an important source of OFDI newlineparticularly after the introduction of economic reforms in 1991. India has newlineemerged as a strong global player with the primary aim of acquiring assets and technology and augmenting its RandD. The array of internationalization strategy newlineoptions accessible to the firms have resulted in varying degrees or levels of newlinesuccess and impact in their internationalization journey of the firms. Therefore, to study the patterns and impact of the global strategies on the firms newlineperformance, it is necessary to evaluate the degree or level of newlineinternationalization of the firms. Despite the fact, there is extensive literature on newlineinternational markets and different measures of degree of internationalization (DOI), a majority of these studies pertain to developed economies or China. newlineThese studies are not representative of an emerging economy like India, due to the institutional voids or given their head start on the internationalization agenda. There are also many internal and external factors causing internationalization process to succeed or fail, and the existing studies focused more on the external factors. Prior studies focused on examining the role of newlineexternal factors in internationalization and firm performance. Linkage between newlineinternal organizational factors and internationalization has not been studied newlineadequately. newlineThis research intended to measure the DOI of Indian manufacturing companies. newlineThe measures of DOI were identified based on literature review and based on newlineexpert feedback. The six organizational factors were identified based on the newlinefocus group discussions (FGD), literature review and internationalization theories.