Internationalization process of a developing country multinational: the outward foreign direct investment decisions in Bimbo Group

Abstract

There is a lack of extended knowledge on internationalization

theories applied to developing countries firms (DCF) within the international

business field. This paper explains the drivers of the international

investment behavior of world leader baking company Bimbo and the

relevance that the main internationalization theories have in the foreign

direct investment (FDI) decisions. Ownership, Locational and Internalization

(OLI) advantages, as well as the Uppsala model, will be explained

and compared to the Bimbo’s internationalization path. Furthermore,

Bimbo’s international operations are summarized and presented

chronologically. Finally, a comparison between the above mentioned

theories and the company’s behavior is provided, and the conclusion that

Dunning’s (2000) eclectic paradigm explains the firm’s internationalization

is suggested.