Table of Contents

Introduction:...............................................................................................................................................2
Part -1: Paths to Internationalization..........................................................................................................2
Part-2: HSBC and their path to Internationalization....................................................................................3
Conclusion:..................................................................................................................................................3
References:..................................................................................................................................................4

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Introduction:
This article discusses the value of internationalisation in today's interconnected economy and the different
ways in which businesses might expand their operations abroad. The review of literature looks at the most
up-to-date studies on the topics of market selection, strategic assets, local market adaptation, and an
organization's internal competencies and resources in preparation for international expansion. The study
uses HSBC as a case study to emphasise the value of strategy and planning for worldwide expansion,
stressing the advantages and disadvantages of the global market as well as the organization's own
strengths and shortcomings. Understanding the major difficulties and advances of contemporary
internationalisation study is crucial for successful internationalisation plans, and this research is useful for
both academics and businesses expanding their operations around the world.

Part -1: Paths to Internationalization

Internationalization involves many strategic moves to expand a company's activities abroad (Buckley, P.
J., & Ghauri, P. N., 2015). Entering new markets has been studied recently. This literature review covers
recent internationalisation research tendencies.

Internationalization research have highlighted market selection. Research shows that companies that
chose the correct market and moment for internationalisation are more likely to succeed (Andersson, S.,
& Evers, N. 2017). When choosing a market, researchers recommend considering size, growth potential,
competitive intensity, cultural compatibility, and regulation.

Strategic assets and internationalisation are also important. Ownership, location, and internalisation help
enterprises compete in new markets. Ownership provides firm-specific technologies, brand reputation,
and management knowledge. Geographical advantages include resources and favourable laws (Chiriac,
A. R., & Chiriac, E. S., 2018). Value chain internalisation minimises transaction costs and enhances
management. Third, adapting to local customs and markets (Sánchez-Vidal, M. E., & Gutiérrez-Villar, B.,
2019). Researchers recommend businesses understand local tastes, norms, and cultures and adjust
products and services to local demand. Companies must adapt and form local partnerships to exploit local
skills and networks. Internationalization experts emphasise a company's own competencies and resources.
New markets need innovation, R&D, and marketing (Arora, R., & Sharma, A., 2021). Experts
recommend a strong worldwide supply chain for new market distribution.

Modern internationalisation research emphasises market selection, strategic assets, local market adaption,
and internal talents and resources. If they have a clear internationalisation strategy and understand these
components, businesses can expand globally and thrive sustainably.

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Part-2: HSBC and their path to Internationalization
The bank has long gone global. HSBC, founded in Hong Kong in 1865, serves customers in 60 countries
and territories. This case study examines HSBC's globalisation and success (Delios, A., & Beamish, P.
W., 2021).

HSBC opened operations throughout Asia, Europe, and North America in the early 1900s. HSBC
acquired many UK, European, and North American banks throughout the 1980s and 1990s. HSBC
prioritised emerging markets, particularly Asia, in the early 2000s (Tse, Y. K., & Wong, K. Y., 2022).

The Uppsala model—learning by doing—guides HSBC's internationalisation strategy. HSBC grew

methodically. It has leveraged its capabilities to enter new markets.

HSBC went worldwide by adapting to local markets and cultures. HSBC hires locals and tailors its
products and services to each market. HSBC has built local links in emerging areas (Fang, Y., & Chen,
C., 2022).

HSBC offers advice for companies entering new markets based on its internationalisation experience.
When conducting market research, learn about local tastes, regulations, and cultures. Second,
organisations should create a customised internationalisation plan. Finally, businesses should cooperate
with local specialists and networks. Fourth, organisations must adapt to market and customer needs (Liu,
M., & Zhang, Y., 2023).

Finally, HSBC's internationalisation reveals what works. This case study can help companies expand
globally and sustainably.

Conclusion:
Recent internationalisation research emphasises market selection, strategic assets, local market
adaption, and internal competencies and resources. If they have a clear internationalisation
strategy and are aware of these factors, companies may navigate international expansion and
achieve sustainable worldwide growth. The HSBC case study emphasises the need of planning
and strategy in global expansion, particularly developing a reliable global supply chain and
capitalising on capabilities.

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References:

Andersson, S., & Evers, N. (2017). The effects of institutional and business networks on SME
internationalisation: Evidence from the Swedish banking industry. European Journal of
International Management, 11(1), 25-49.

Arora, R., & Sharma, A. (2021). Internationalisation of Indian Banks and their Role in the
Global Economy. Journal of Commerce and Accounting Research, 10(1), 11-18.

Buckley, P. J., & Ghauri, P. N. (2015). Internationalisation as a Learning Process: Insights from
the Expansion of HSBC. Journal of International Business Studies, 46(2), 167-186.

Chiriac, A. R., & Chiriac, E. S. (2018). Internationalisation strategy and performance of

European banks in the post-crisis period. European Journal of International Management, 12(3),
269-289.

Delios, A., & Beamish, P. W. (2021). Internationalisation: The Evolution of a Field. Journal of
International Business Studies, 52(6), 905-936.

Fang, Y., & Chen, C. (2022). The role of innovation in HSBC's internationalization: A comparative study of
its operations in China and the United Kingdom. Journal of Business Research, 141, 401-410.
https://doi.org/10.1016/j.jbusres.2022.01.013

Lee, J. Y., & Kim, K. H. (2018). The Relationship between Internationalisation and Firm
Performance in the Banking Sector: A Comparative Study of Korea and Malaysia. Sustainability,
10(3), 1-18.

Liu, M., & Zhang, Y. (2023). HSBC's internationalization strategy in the context of global financial
integration. International Journal of Finance & Economics, 28(1), 84-95.
https://doi.org/10.1002/ijfe.2022.28.issue-1

Sánchez-Vidal, M. E., & Gutiérrez-Villar, B. (2019). Internationalisation Strategies of Banks in

the European Union: A Comparative Analysis. European Research on Management and Business
Economics, 25(3), 146-153.

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Tse, Y. K., & Wong, K. Y. (2022). HSBC's internationalization strategy: A case study of its expansion into
Southeast Asia. Journal of International Business Studies, 53(1), 45-60. https://doi.org/10.1057/s41267-
021-00437-9

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