The internationalization of the United States chemical industry
Kadlec, Susan Anne
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Permalink
https://hdl.handle.net/2142/22011
Description
Title
The internationalization of the United States chemical industry
Author(s)
Kadlec, Susan Anne
Issue Date
1995
Doctoral Committee Chair(s)
Hill, Richard
Department of Study
Business Administration
Discipline
Business Administration
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Business Administration, Management
Economics, Commerce-Business
Language
eng
Abstract
Many firms have taken advantage of increasing international opportunities. Therefore, internationalization is important because it has been a source of growth and profitability. To adequately study the topic, it is necessary to investigate the factors that constitute and influence internationalization. This dissertation investigates internationalization and diversification; entry mode and diversification; international organizational structure and entry mode; restructuring and entry mode; and restructuring and internationalization.
The major finds of this study are as follows. Related diversified firms are more likely to have higher levels of internationalization than are unrelated diversified firms. The more countries the firm enters, the more likely the firm is to use one of the four types of international organizational structure other than the international division. The type of entry mode chosen and its attendant level of ownership control do appear to influence international organizational structure. Firms that reduce commodity products to focus on specialty chemicals tend to use wholly-owned subsidiaries. Chemical firms that restructure to reduce their level of product diversification use the resources thus freed to increase their level of internationalization. Firms that are focusing on core products (either specialty or commodity) are using the newly available resources to increase their level of internationalization.
The contributions of the research are twofold. First, the study provides empirical testing of existing transaction costs and resource based theory. Second, the study attempts to provide relevance for managers. The results of the empirical work have practical applications for practitioners.
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