An in-depth analysis of the strategic decisions made by multinational investment property companies engaged in internationalisation, using the eclectic paradigm as a framework.

The rise of globalisation has led to more and more companies expanding beyondtheir borders. Gray (2002) sees this rise as a direct result of technology. He feelsthat technology has been the main factor leading to internationalisation. Desai(2003) feels that it is a combination of both market forces and technology givingrise to greater cross-border trade. The flow of foreign direct investment (FDI)around the world increased by up to seven times between 1992 and 2006 (Hill,2007). This led to a 150 percent increase in world trade value and a 45 percentincrease in output (2007). According to Hill by 2005 stock of global FDI exceeded$10 trillion. The objective of this research is to understand the intricacies of the strategicdecisions of multinational property companies that expand beyond their borders,with a focus on investment property. The research uses the internationalisationtheory known as the eclectic paradigm as a lens through which to view thesubject. The paradigm is made up of three sub-paradigms ownership, locationand internalisation - and focuses on how multinational companies internationalisetheir operations. Multinational property companies (MNPCs) are increasingly looking to increasetheir foreign direct investments into investment property outside their borderswhere the yields may be better, or perhaps to spread their risk (de Rauville,2008). Using the case study methodology the research aims to understand notonly how these companies achieve their fdi ends, but why they chose particular modes of entry; their specific country choices; and what led them to believe thatthey had the capability to ensure success. Of added interest is the application ofthe eclectic paradigm within this context. The research proved successful in that the intricacies of the strategic decisionsmade by the multinational investment properties in the study were revealed.These led to further insights for current and future work on the topic. In additionthe eclectic paradigm proved a most useful lens with which to view the topic. Copyright © 2008, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria Please cite as follows: Ridgway, T 2008, An in-depth analysis of the strategic decisions made by multinational investment property companies engaged in internationalization, using the eclectic paradigm as a framework, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03162010-144032/ > G10/79/ag