Abstract
This study uses a comparative case study approach to analyze the internationalization process of two Italian firms and to identify its impacts on their manufacturing plants operations in Vietnam. The results indicate that the internationalization of operations of the two firms shows a combination of both standardization (transfer) and adaptation even though the degree of transfer and adaptation differs between the two studied firms. It further illustrates that not only the local conditions, but also the involvement and commitment of the head office in the operations of the local plants play significant roles in determining whether firms should standardize or adapt their operations in foreign markets.