The internationalization of Italian firms in India: some empirical evidences

Massimo Cortili, Alessia Pisoni () and Alberto Onetti ()
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Massimo Cortili: Department of Economics, University of Insubria, Italy
Alessia Pisoni: Department of Economics, University of Insubria, Italy
Alberto Onetti: Department of Economics, University of Insubria, Italy

Economics and Quantitative Methods from Department of Economics, University of Insubria

Abstract: This study explores the characteristics of Italian foreign direct investment (FDI) in India and aims at filling the gap identified in the literature by providing a comprehensive empirical analysis on this issue. More specifically, we try to understand the reasons behind internationalization decisions in India, the strategic goals associated with them (i.e. manufacturing vs. commercial), the role played by the Indian subsidiary and its value chain configuration. In order to investigate the research questions, a unique database of Italian firms that invested in India was created. The first empirical confirmation we collected was about the low number of Italian companies with subsidiaries in India. In terms of internationalization goals it emerges clearly from the research that the main target is market seeking. In order to acquire that market share Italian companies have organized their subsidiaries as partially independent companies, adopting a typical “Multidomestic” approach customizing products and services to the local needs and demands.Moreover, the industry fragmentation suggests that so far only the best in each class hav approached India. This is indirectly confirmed by the fact that it is indeed almost impossible to find two Italian competitors present at the same in India.

Keywords: India; internationalization; FDI; value chain (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-01
New Economics Papers: this item is included in nep-ifn
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