Replacing Traditional Economics with Behavioral Assumptions in Constructing the Uppsala Model: Toward a Theory on the Evolution of the Multinational Business Enterprise (MBE)

In this paper we describe the evolution of the Uppsala model, which we see as a gradual substitution of economics-type assumptions with ones derived from the behavioral theory of the firm and from empirical studies of international firm behavior. We rely upon them to introduce a new version of the Uppsala model. To decrease the traditional focus on the activity of manufacturing and increase attention to the entrepreneurial and exchange activities of international companies, we renamed these firms “multinational business enterprises” (MBEs). We end with a plea to improve the relevance of empirical research in the international-business (IB) area by not only relying upon realistic assumptions but also performing longitudinal studies.