Abstract:
Using core periphery theory as a framework, this paper examines the internationalisation
process of businesses domiciled in peripheral economies. The paper proposes that a number
of popular theories of internationalisation are based upon resource availability which is only
likely to be found in continental sized economies. The theories fail to explain the strategic
options available to firms in peripheral economies. This paper proposes a model which
identifies four stages of expansion which are likely to be experienced by firms domiciled a
small economy. It starts with domestic focus and moves though early expansion, full
engagement and finally the last stage of loss of national identity. The characteristics of each
stage are identified and the relevance of core periphery theory for multinational location is
discussed.
