Technology and international business in an age of globalisation

The chapter explores the emergence of “modern” multinational enterprises during the Second Industrial Revolution, using Pirelli as a case study of international business expansion. The Second Industrial Revolution was characterised by transformative technologies in chemical processing and complex product assembly, driven by scientific research, abundant fossil fuel energy, and improved communications. This technological shift led to significant changes in business structures, with companies pursuing economies of scale and market share through mergers, acquisitions, and diversification. The new industrial corporations were marked by capital-intensive production, sophisticated management hierarchies, and a drive to expand both domestically and internationally. While not all large enterprises immediately internationalised, many were compelled to extend operations across borders. The chapter highlights how technological innovations, combined with strategic entrepreneurial vision, created new organisational forms of international business. These “modern” multinationals would come to dominate global economic interactions, representing a fundamental shift from earlier trading and merchant company models.