A study by Hsu, Chin-Chun and Arun Pereira in 2008 focused on the aspect of internationalization and performance which occur due to organizational learning, particularly in the Multinational Enterprises. The drive for the business to adopt the internationalization theory compose a global enterprise is discussed. “Integrating two distinct literature streams from the organizational learning perspective and the resource-based view, we present an integrated, multidimensional framework for analyzing multinational enterprises’ (MNEs’) resources, internationalization, and organizational learning, as well as their associated impact on firm performance. Specifically, using a sample of 110 American MNEs, we find that while certain MNE resources motivate and precede internationalization, social and market learning (whereas technological learning does not) moderates the relationship between internationalization and performance. These findings extend prior research by establishing the importance of the relationships among MNE resources, internationalization, organizational learning, and firm performance.”( Hsu & Pereira, 2008)
Today the nature of the firm has much changed due to environment in which operates and according to Palmisano ( 2007) there is a change from a multi national to a global enterprise. The multinationals are seeking to become global enterprises as an integrated company with a centralised organization set up pertaining to goals, objectives and orientation forms a symbol of unity and forward progress. An example of this is Coca Cola, while the company has been franchising its products to the regional markets, the company has been able to maintain and manage the image and the brand of the company and its product by itself. This gives the company control over the immense brand equity that lies behind the Coca Cola Brand. Similarly the same concept is applied to the organizational brand, and the organizational working I the scope of the internationalization theory.
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