The Role of Network Relationships in the Internationalization of Peruvian Firms

Abstract: To offer a deeper understanding of how Peruvian firms internationalize this paper aims to throw in an acknowledged theoretical gap in international business research by giving a contribution towards the internationalization of Multilatinas based on a network perspective. The purpose is to investigate what drives Peruvian Multilatina's to internationalize, what market they select, how they enter these markets, and how different network relationships can influence their internationalization. Research question: What does the internationalization process look like for a Peruvian Multilatina? Method: Includes a qualitative research method with the use of semi-structured interviews. A multiple case study was utilized to gain comparative insights into how Peruvian Multilatinas internationalized through their networks relationships. For the analysis, the theoretical framework consisted of: internationalization drivers, market selection, choice entry mode, and importance of networks. Conclusions: The results conclude that Multilatinas do not follow a unique pattern of internationalization, but follow an accelerated expansion strategy based on the context of their political and economic environment. The Multilatinas studied started off by exporting to markets that had similar characteristics to their own. Once they had adequate experience and knowledge of operating there, they followed up with contractual and investment entry modes. The Multilatinas relied on different network relationships in order to internationalize. The most important being the business relationship and institutional relationship in order to gain insidership.