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Journal articles on the topic 'Emerging Multinationals (EMNEs)'
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1
Verbeke, Alain, and Liena Kano. "The New Internalization Theory and Multinational Enterprises from Emerging Economies: A Business History Perspective." Business History Review 89, no. 3 (2015): 415–45. http://dx.doi.org/10.1017/s0007680515000689.
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The recent surge of emerging-economy multinational enterprises (EMNEs) has prompted a debate on whether existing international business theory—particularly internalization theory—can accommodate this phenomenon. Our view is that no new, EMNE-centric theory is required to study EMNEs. Using historical evidence, we argue that “new” internalization theory is sufficient to address the complexity of EMNEs, and we illustrate our argument with examples of ten successful EMNEs from Asia and the Americas. We further argue that a business history lens can illuminate the behavior of developed-economy multinationals. We show how management scholars can advance their research agendas by engaging with business history and how business historians can use internalization theory to analyze the history of multinationals.
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Williamson, Peter J. "The competitive advantages of emerging market multinationals: a re-assessment." critical perspectives on international business 11, no. 3/4 (2015): 216–35. http://dx.doi.org/10.1108/cpoib-02-2014-0008.
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Purpose – The purpose of this paper is to re-assess both the nature and sources of the competitive advantages which multinationals expanding from home bases in emerging economies (EMNEs) may enjoy in the global market. Design/methodology/approach – The paper analyses the results of 12 concurrent studies undertaken by a group of experts who were asked to examine how strategies for innovation, international value chain configuration and foreign mergers and acquisitions contributed to the competitive advantages of multinationals emerging from Brazil, Russia, India and China (the BRICs), respectively. Findings – EMNEs do have competitive advantages that can underpin their expansion abroad, but these are mainly “non-traditional” advantages that have been built by finding innovative ways to leverage advantages of their home countries. EMNE’s internationalisation is as much about accessing new resources and knowledge to enable them to extend their competitive advantage, as it is a route to exploiting existing advantages over a larger set of markets. As a result, the global value chain structure of EMNEs tends to be fundamentally different from that chosen by incumbent multinationals. Research limitations/implications – The study is limited to EMNEs from the BRIC countries, but implications for EMNEs emerging from other countries are discussed. Originality/value – We bring to bear extensive data and a systematic approach to understanding the new breed of multinationals emerging from the BRIC countries; their sources of competitive advantage; and how they are using innovation, foreign investment and overseas acquisitions to transform global competition.
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Williamson, Peter, and Feng Wan. "Emerging market multinationals and the concept of ownership advantages." International Journal of Emerging Markets 13, no. 3 (2018): 557–67. http://dx.doi.org/10.1108/ijoem-08-2017-0319.
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Purpose The purpose of this paper is to re-assess the concept of ownership advantages in the light of successful international expansion of multinationals from emerging economies (EMNEs) and explore how these advantages are built. Design/methodology/approach The paper presents a viewpoint based on analysis of the successful international expansion of a sample of Chinese EMNEs where success is measured their ability win share in overseas markets. This allows us to identify their ownership advantages, the antecedents of these advantages and how they were built using dynamic capabilities. Findings EMNEs have “non-traditional” ownership advantages that have been built by finding innovative ways to leverage the locational advantages of their home countries. The conversion of locational advantages into ownership advantages requires that firms build dynamic capabilities that enable them to innovate in the use of the locational advantages they enjoy. Research limitations/implications The study is limited to a small sample of EMNEs from China who have succeeded in winning market share in the initial phases of their international expansion. In the light of these limitations, the authors discuss the question the sustainability of their competitive advantage as well as the likely applicability of our findings to EMNEs from other EMNEs. Originality/value The authors revisit the paradox that despite the growth and success of multinationals from EMNEs in the past decade they are assumed to lack ownership advantages. The authors show that EMNEs’ ownership advantages differ from the traditional advantages such proprietary technologies and brand equity that are enjoyed by incumbent multinationals.
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Pananond, Pavida. "Motives for foreign direct investment: a view from emerging market multinationals." Multinational Business Review 23, no. 1 (2015): 77–86. http://dx.doi.org/10.1108/mbr-02-2015-0008.
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Purpose – The purpose of this paper explains how the framework on motives of foreign direct investment (FDI) needs to be rethought when analyzing emerging market multinational enterprises (EMNEs). It argues that the weak position of emerging market firms and their interdependent relationship with lead firms in global value chains (GVCs) modify the selection of internationalization motives. Design/methodology/approach – The arguments are illustrated through a critical review of the literature on FDI motives and a discussion on how the literature can be extended from looking through the lens of emerging market multinationals, particularly those with early development as suppliers in global value chains. Findings – The weak position of emerging market firms and their interdependent relationship with lead firms in global value chains modify the selection of internationalization motives on two aspects. First, internationalization decisions of EMNEs in GVCs are not undertaken in an independent manner. Rather, decisions are influenced by the initial position along the value chain and the dynamic relationships that these EMNEs have with lead firms. Second, the selection of FDI motives of these EMNEs reflects both their international expansion strategy and the upgrading effort they wish to pursue to undertake higher value-adding activities along the GVCs. Originality/value – These implications addressed in this paper add more nuances to the interpretation of FDI motives. Previously viewed mainly from the perspective of lead firms, FDI decisions are considered as independent alternatives that multinational enterprises (MNEs) can undertake to fulfill their internationalization strategy. Revisiting the FDI motives from the perspective of EMNEs reveals further insights on the interdependent nature of their internationalization, particularly reflecting the weaker position of EMNEs and their interdependent relationship with lead firms in their industry.
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He, Shaowei, Zaheer Khan, Yong Kyu Lew, and Grahame Fallon. "Technological innovation as a source of Chinese multinationals’ firm-specific advantages and internationalization." International Journal of Emerging Markets 14, no. 1 (2019): 115–33. http://dx.doi.org/10.1108/ijoem-02-2017-0059.
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Purpose The purpose of this paper is to examine how innovation-related firm-specific ownership advantage (FSA) plays a role in developing the competitive advantage of Chinese multinationals when they internationalize. Design/methodology/approach Based on a review of the existing literature concerning foreign direct investment by emerging economy multinational enterprises (EMNEs), the authors identify that numerous studies explain this phenomenon on the basis of their location-bound country-specific advantages. However, such views do not fully explain the key underlying factors behind the rapid rise and success of many EMNEs as these firms rapidly internationalize and develop global competitiveness in developed markets. The current research explores three leading innovative Chinese EMNEs from the engineering sector: BYD, Sany Heavy Industry and CSR China. Findings The authors find that EMNEs’ knowledge, and particularly their innovation-creating technological knowledge, has contributed greatly to their successful internationalization. The illustrative cases show that the three firms have now moved beyond the infant to the mature stage of EMNE development through developing their technological knowledge in order to realize FSA through internationalization. This study helps in contributing fresh reflections to the continuing debate concerning the causes of internationalization and global competitive development by EMNEs and the role of their FSAs in these processes. Originality/value This is one of the few studies which have demonstrated that some of the EMNEs do possess firms’ specific advantage which helps explain their innovative capabilities, competitive advantages and subsequent internationalization patterns.
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Liu, Yang, Ping Deng, Jiang Wei, Ying Ying, and Mu Tian. "International R&D alliances and innovation for emerging market multinationals: roles of environmental turbulence and knowledge transfer." Journal of Business & Industrial Marketing 34, no. 6 (2019): 1374–87. http://dx.doi.org/10.1108/jbim-01-2018-0052.
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PurposeThe purpose of this paper is to examine the relationships between environment turbulence, knowledge transfer and innovation performance for emerging market multinationals (EMNEs) in an asymmetric international R&D alliance.Design/methodology/approachData were collected through a survey of high-tech firms in Zhejiang Province of China from 2013 to 2015.FindingsInnovation performance of EMNEs is positively influenced by knowledge transfer activities (knowledge replication and knowledge adaption), technological and market turbulence, while negatively influenced by institutional turbulence. In addition, different aspects of environmental turbulence moderate the relationship between knowledge transfer practices and innovation performance of EMNEs differently.Research limitations/implicationsFuture studies could use a longitudinal design to capture the dynamism driving innovation performance of EMNEs through R&D alliances.Practical implicationsPractical guidelines are provided particularly for EMNE managers on how to develop an innovation strategy by leveraging external knowledge, adaptive innovation and environmental turbulence.Originality/valueThis study deepens the knowledge of how EMNEs enhance their innovation by building the linkage between environmental turbulence and absorptive capacity through knowledge transfer activities in an asymmetric international R&D alliance.
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Santos, Roberto S., and Denise R. Dunlap. "51 Flavors: Regional Resource Configurations and Foreign Multinational Market Entry in the U.S. Biopharmaceutical Industry." Sustainability 13, no. 17 (2021): 9763. http://dx.doi.org/10.3390/su13179763.
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Creating a sustainable regional economy requires not only attracting new local ventures, but also foreign multinationals. In this regard, understanding which resources are influential in market entry decisions is crucial given that there are different resource needs between developed (DMNE) and emerging market (EMNE) multinationals. Answering calls for more neo-configurational studies in the literature, our study uses a fuzzy-set qualitative comparative analysis (fsQCA) approach to examine foreign multinational entry decisions in 51 regions of the U.S. We constructed a novel dataset comprised of 3287 foreign firms from 61 countries and territories operating in the biopharmaceutical industry. We find that there are substantial differences in the configuration of resources that attract DMNEs and EMNEs to regions. The resource configurations in our models account for over 80% of the factors influencing DMNE and EMNE market entry location decisions. Some resources played a more important role in these decisions, such as FDI stocks, cluster size, and manufacturing intensity. Our findings show that EMNEs seek out regions with a greater abundance of different resources than DMNEs. This study provides practical implications for firms entering foreign markets as well as for policy makers who want to attract these firms to bolster their regional economic development.
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Pereira, Vijay, Kamel Mellahi, Yama Temouri, Swetketu Patnaik, and Mohammad Roohanifar. "Investigating dynamic capabilities, agility and knowledge management within EMNEs-longitudinal evidence from Europe." Journal of Knowledge Management 23, no. 9 (2019): 1708–28. http://dx.doi.org/10.1108/jkm-06-2018-0391.
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Purpose This paper aims to analyse the impact of dynamic capability (DC) of emerging market multinationals (EMNEs) on their firm technological performance by teasing out the concepts of agility and knowledge management (KM) through DC. Design/methodology/approach Evidence from this study is contextualised on EMNEs that operate in the UK, Germany and France. This study examines the investment in intangible assets which EMNEs use to develop their DC over the period 2005-2016 and how this leads to increased firm technological performance. Findings Results show that higher investments in DC allow EMNEs to be more agile and gain competencies through KM and thereby sustain competitiveness in the three leading European countries. This research also identifies which EMNE groupings show greater technological performance and how such EMNE groupings are able to translate dynamic capabilities into greater technological performance compared to others over time. In summary, the role of DC during of the global financial crisis was also examined, where they are required to be more agile. Originality/value This paper sheds light on a novel way and motivation of successful EMNEs in using developed host countries as a location for generating DC through agility and KM.
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Dunlap, Denise R., and Roberto S. Santos. "Storming the Beachhead: An Examination of Developed and Emerging Market Multinational Strategic Location Decisions in the U.S." Journal of Risk and Financial Management 14, no. 7 (2021): 325. http://dx.doi.org/10.3390/jrfm14070325.
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Entering a foreign market is challenging given the fierce competition posed by local incumbents. The literature suggests that when entering a foreign market, it is advantageous to locate where there are agglomeration benefits. Given the dynamic nature of regional development, foreign firms have multiple location options. While the literature has primarily focused on developed country multinationals’ (DMNEs) location decisions, emerging market multinationals (EMNEs) are increasingly becoming influential in high-tech industries. Due to differences in DMNE and EMNE resource endowments, they may consider alternative options when locating abroad and, thus, we examine these nuances. Using multinomial logistic regression, we investigate domestic and foreign location patterns of firms within the U.S. biopharmaceutical industry as of 2018. We constructed a unique dataset of 19,962 U.S. locations and examined the location patterns of DMNEs and EMNEs from 61 countries and territories. Given the heterogeneity of regional development in the U.S., we developed a typology that stratifies regions into four categories (developed, growth, transitioning, and nascent). Counterintuitively, we find that foreign multinationals are more likely to be attracted to less developed regions than domestic firms and have different location patterns, not only compared to domestic firms, but also with respect to each other.
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Hennart, Jean-François. "Springing from where? How emerging market firms become multinational enterprises." International Journal of Emerging Markets 13, no. 3 (2018): 568–85. http://dx.doi.org/10.1108/ijoem-09-2017-0324.
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Purpose The purpose of this paper is to show that existing theories, principally Dunning’s OLI model, Mathews LLL model and Rugman’s version of internalization theory are unable to explain the rise of emerging market multinationals (EMNEs). The reason is that they over-emphasize the strategic importance of intangibles and ignore that of complementary local assets. Taking complementary local assets into account makes it possible to understand why EMNEs are able to finance their intangible-buying sprees and, often with the help of their governments, to swap market access for technology. Design/methodology/approach This is a conceptual paper based on the bundling model (JIBS 2009) and backed by the case histories of four EMNEs. Findings The author shows that EMNEs have much better prospects vis-à-vis established MNEs than generally thought in Western Europe and the USA and that they will become serious competitors. Originality/value This is, as far as the author knows, the first explanation of why EMNEs have the bargaining power and the resources necessary to swap or buy technology from established MNEs.
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Yeganeh, Kia Hamid. "An examination of the conditions, characteristics and strategies pertaining to the rise of emerging markets multinationals." European Business Review 28, no. 5 (2016): 600–626. http://dx.doi.org/10.1108/ebr-10-2015-0129.
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Purpose This paper aims to examine the conditions, characteristics and strategies pertaining to the rise of emerging markets’ multinationals (EMNEs). Design/methodology/approach The paper relies on both academic and professional resources to offer a holistic understanding of EMNEs by reviewing, analyzing and classifying their underlying conditions, characteristics, internationalization motivations, strategies and competitive advantages. Findings The analysis indicates that EMNEs ascended as a result of major socio-economic transformations in the past two decades after the Cold War; follow an accelerated path of expansion; implement flexible and decentralized organizational configurations; enjoy strong political connections; do not internationalize according to the ownership-location-internalization paradigm, rather follow the linkage-leverage-learning pattern; benefit from multiple sources of competitive advantage and adopt five main types of international strategies; are becoming more sophisticated and represent serious threats to their counterparts from advanced economies. Research limitations/implications As emerging markets and their multinationals are highly heterogeneous, the findings and suggestions remain context-bound. Practical implications The paper synthesizes the EMNEs literature, bridges theory and practice and offers an integrative outline that can be useful for international business managers. Originality/value The paper takes an all-inclusive approach and provides insights into multiple societal and organizational facets of EMNEs.
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Mondal, Arindam, and Sarada Devi Gadepalli. "Does Knowledge from Home Markets Boost Outward Foreign Direct Investments of Emerging Economy Multinationals? Evidence from Indian Family EMNEs." American Business Review 23, no. 2 (2020): 211–40. http://dx.doi.org/10.37625/abr.23.2.211-240.
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Despite increasing research on multinationals from emerging economies (EMNEs), our understanding of the antecedents of their international expansion is still limited. In this study, we seek to examine whether knowledge gained from operating in their complex and diverse domestic markets deter or aid the outward foreign direct investments of EMNEs. As family firms are dominant in emerging economies, we further explore how heterogeneity within family firms moderate this relationship. We conduct our investigations using a proprietary longitudinal dataset comprising 213 EMNEs from India featuring in the S&P Bombay Stock Exchange (BSE) 500 index covering a six-year period from 2007-08 to 2012-13, of which 175 were family EMNEs and find supporting evidence for our theoretical predictions.
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Marchand, Morgan. "New models in old frameworks? Contributions to the extension of international management theories through the analysis of emerging multinationals." International Journal of Emerging Markets 13, no. 3 (2018): 499–517. http://dx.doi.org/10.1108/ijoem-03-2016-0070.
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Purpose The extent to which emerging multinational enterprises (EMNEs) challenge extant international management (IM) theories is a question under current discussion. The purpose of this paper is to confront two classic theories (internationalization process model (IPM) and post-acquisition integration types) to several EMNEs strategies within their initial conceptual frameworks, exploring how their practices lead to extend and update existing models. Design/methodology/approach This paper compares the classic IPM with the development stages of iconic EMNEs. This reveals how EMNEs’ strategies can be analyzed within extant conceptual frameworks, extending their theoretical content. This approach is then applied to an empirical study of post-acquisition integrations conducted in France by EMNEs from 11 countries of origin. Findings Two theories are discussed, with suggested updates, within their extant frameworks, taking into account EMNEs’ strategies. First, the initial IPM is re-explored to reveal concentrated paths, from all quadrants of the framework. Similarly, post-integration typologies are updated, including the partnering approach frequently implemented by EMNEs, and the holding approach empirically identified with some specific features (subjection). Originality/value This paper combines an analysis of some iconic EMNEs’ internationalization processes and empirical data on up-market acquisitions by EMNEs from diverse countries of origin. It provides suggestions to update two IM theories.
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Chen, Liang, Yi Li, and Di Fan. "Who are the most inclined to learn? Evidence from Chinese multinationals’ internationalization in the European Union." Asia Pacific Journal of Management 38, no. 1 (2019): 231–57. http://dx.doi.org/10.1007/s10490-018-9605-9.
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AbstractWhile it is widely recognised that an asset-augmenting rather than asset-exploiting strategy drives emerging multinationals’ (EMNEs) internationalization, current research focuses on the motivations behind knowledge seeking FDI. What remains less clear is why latecomer firms can engage in learning in advanced countries. Conjoining the “Linkage-Leverage-Learning (LLL)” framework and knowledge seeking literature, this study shows how Chinese investment in the European Union reveals the preconditions for foreign knowledge sourcing. We follow a set-theoretic approach, utilizing fuzzy-set qualitative comparative analysis (fsQCA), to identify equifinal configurations of linkage and leverage conditions leading to high learning propensity of EMNEs. Our analysis extends the LLL framework and complements the recent debate on the theory of the EMNE. We develop propositions based on distinct constellations of learning antecedents.
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Hendriks, Guus. "How outward investment from emerging markets affects economic development at home: using the eclectic paradigm to synthesize two IB literatures." Multinational Business Review 28, no. 4 (2020): 463–82. http://dx.doi.org/10.1108/mbr-10-2019-0133.
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Purpose This paper aims to use the eclectic paradigm as a broad organizing framework to bring together two somewhat parallel international business (IB) literatures, one on the development effects of multinational enterprise activity and the other on the internationalization of emerging market multinationals (EMNEs). The author does so to better understand how outward foreign investment shapes economic development in firms’ home countries. Design/methodology/approach Considering that the characteristics of foreign investment by EMNEs likely differ from that of their developed economy counterparts and that such characteristics may have unique development consequences, the author revisits one of IB’s overarching theories to rethink how ownership, location and internalization advantages take shape and stimulate diverse development outcomes. Findings My narrative review and conceptual analysis indicate that the eclectic paradigm is a valuable framework that can be used to shed light on underexplored phenomena and thereby inform important policy debates. The analysis suggests that unique characteristics of EMNE investment simultaneously have positive and negative development consequences in their home countries. Practical implications The author sets out a research agenda that revolves around six propositions that separately relate one of these three distinct characteristics of EMNE investment to two development outcomes, namely, spillovers and direct effects on home-country employment. My propositions suggest that important policy dilemmas potentially apply, in that each of the three characteristics positively affects one of the aspects of development, but negatively the other. Originality/value My research agenda presents international business scholars with new opportunities to build on a history of policymaking impact, now geared toward resolving society’s grand challenge of underdevelopment.
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Pradhan, Jaya Prakash. "Strategic Asset-seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs." Organizations and Markets in Emerging Economies 1, no. 2 (2010): 9–31. http://dx.doi.org/10.15388/omee.2010.1.2.14294.
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While in general, studies on foreign acquisitions by emerging multinationals (EMNEs) have predicted these acquisitions to be driven by both market-seeking and strategic resource-seeking motivations, more concrete analyses on this topic are limited. This paper contributes to the existing literature by analyzing the overseas acquisition activities of EMNEs from Indian pharmaceutical sector. Using the general framework of technological change in emerging economies, Indian pharmaceutical firms are identified to have delicate weakness in their product development capabilities to face intensifying competition in the globalized policy regime. It makes sense for these firms to internationalize through acquisitions of foreign assets that help them not only access new markets but also new products and technologies to overcome their limited product development competencies. The empirical findings highlight the role of host market size, intensity of patenting, skill and liberal FDI policy regime as the key determinants of the geographical distributions of Indian pharmaceutical acquisitions. This implies that EMNEs from Indian pharmaceutical industry are using acquisition as a mixed strategy of accessing markets as well as strategic assets/resources.
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Xie, Yu, Yi-Fei Du, Francis Boadu, and Xuan-Ya Shi. "Executives’ Assessments of Evolutionary and Leapfrog Modes: An Ambidexterity Explanation Logic." Sustainability 10, no. 8 (2018): 2893. http://dx.doi.org/10.3390/su10082893.
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Under the background of resource dependence, it is of great significance to study the emerging market multinationals’ (EMNEs) entry mode into international market. How do complementary assets and expansion opportunities in a host country market influence the EMNEs executive’s entry mode choice? We adopt policy capture method to designed questionnaire and administered to high-level EMNEs executives in China. The results show that the availability of complementary assets in the host country market have a positive influence on EMNEs executives’ evolutionary and leapfrog entry modes choice, and EMNEs executives’ preferences for leapfrog mode over evolutionary mode is positively related to the host country’s complementary assets. The expansion opportunities in the host country market have a positive influence on EMNEs executives’ evolutionary and leapfrog entry modes choice. This shows that expansion opportunities in the host country market have a similar degree of attraction for executives’ evolutionary and leapfrog modes. Unlike most current studies, which advocate that leapfrog is mainly used to obtain international assets, while evolutionary approach is more suitable for seeking international opportunities. This paper shows that the opportunity factors play the same important role as assets factors in promoting EMNEs executives’ springboard behavior. It also reveals the ambidexterity logic in EMNEs executives’ decision-making process.
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Angulo-Ruiz, Fernando, Albena Pergelova, and William X. Wei. "How does home government influence the internationalization of emerging market firms? The mediating role of strategic intents to internationalize." International Journal of Emerging Markets 14, no. 1 (2019): 187–206. http://dx.doi.org/10.1108/ijoem-08-2017-0274.
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Purpose The purpose of this paper is to focus on the differential impact of government promotional measures and government ownership on two internationalization variables: location and speed of internationalization of emerging market multinationals (EMNEs). Central to the authors’ study is the mediating role of strategic intents to internationalize. In particular, we study how government impacts the resource-seeking, market-seeking and technology-seeking motives to internationalize. Design/methodology/approach The empirical setting for the paper is Chinese companies that have internationalized via an equity based entry mode. The authors employ 672 firm responses collected by the Asia Pacific Foundation of Canada and the China Council for the Promotion of International Trade. Findings The empirical results demonstrate that different home government measures have differential impact on internationalization outcomes. Government promotional measures (such as direct incentives and bilateral agreements to support internationalization) have only an indirect effect on international location and speed through the effect they have on the strategic motives to internationalize; while government ownership in the company has a direct impact on international location. Research limitations/implications The study highlights that home governments are shaping EMNEs strategic intent. Home government can influence EMNEs internationalization choices by providing resource flows through financial resources and state ownership or through asset-accumulation mechanisms via promotional measures. Practical implications Policy makers in emerging markets need to develop policies focused on the specific motivations that firms have when internationalizing. EMNEs are suggested to take advantage of government policies more intentionally. Originality/value The theoretical contribution centers on identifying important mediating mechanisms pointing to the interplay between government policies and international location and speed of firms. The authors contribute to the growing stream of research on internationalization of emerging market firms by building a sound theoretical model and examining empirically the role of home government in the internationalization of EMNEs.
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Gomez-Trujillo, Ana Maria, and Maria Alejandra Gonzalez-Perez. "What do we know about organizational sustainability and international business?" Management of Environmental Quality: An International Journal 31, no. 2 (2020): 292–305. http://dx.doi.org/10.1108/meq-08-2019-0173.
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PurposeThe purpose of this study is to provide a revision of the literature that links the concepts of sustainability and internationalization in the context of emerging marketsDesign/methodology/approachThe results are presented following the recommendations of Challahan (2014), who introduced the concept of the “Six W” as components of a literature review.FindingsIt can be noted that there are common characteristics among the study of internationalization and sustainability in emerging markets. It is possible to suggest a framework of research that considers internationalization as a driver for the pursuit of sustainability initiatives.Originality/valueThere is an increasing evidence of the inclusion of corporate social responsibility activities and sustainable development on international business. This way, the present paper can serve as a base to understand the internationalization processes of emerging market multinationals (EMNEs) and their commitment to sustainability.
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Bhat, Sneha, and Kirankumar S. Momaya. "Innovation capabilities, market characteristics and export performance of EMNEs from India." European Business Review 32, no. 5 (2020): 801–22. http://dx.doi.org/10.1108/ebr-08-2019-0175.
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Purpose This study aims to investigate the moderating effect of market characteristics on the relationship between innovation capabilities and export performance of Indian pharmaceutical firms. Design/methodology/approach The authors test the hypotheses using generalized least square estimator with random effects, on a panel data set, for the period 2010–2016. Findings Analyses of the data show that innovation capabilities lead to superior export performance. R&D investment positively affects export performance of both developing and developed countries, whereas patent quality negatively affects the export performance of developed countries and has no significance in developing countries. Size of the firm has significant positive effect on its export performance. Originality/value This study explores the role of market characteristics in determining the relationship between innovation and export performance, which has mostly been ignored in extant literature, especially in the context of emerging market multinationals.
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Cui, Lin, Di Fan, Xiaohui Liu, and Yi Li. "Where to Seek Strategic Assets for Competitive Catch-up? A configurational study of emerging multinational enterprises expanding into foreign strategic factor markets." Organization Studies 38, no. 8 (2016): 1059–83. http://dx.doi.org/10.1177/0170840616670441.
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Emerging multinational enterprises (EMNEs) often engage in strategic-asset-seeking foreign direct investment (FDI) for competitive catch-up. This study explores the linkages between an EMNE’s competitive scenario consisting of a configuration of its awareness-motivation-capability (AMC) conditions and the comparative institutional advantages of its strategic-asset-seeking destination. Our configurational analyses of Chinese FDIs in the technology-intensive industries of OECD countries reveal a taxonomy of four distinct asset-seeking strategies of EMNEs. Our findings shed novel insights into the strategic variations within EMNEs based on a theoretically and methodologically extended AMC framework. This study also extends the varieties of capitalism literature by addressing the implications of comparative institutional advantages for foreign entrants, rather than domestic incumbent firms.
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Losada-Otálora, Mauricio, and Lourdes Casanova. "Internationalization of emerging multinationals: the Latin American case." European Business Review 26, no. 6 (2014): 588–602. http://dx.doi.org/10.1108/ebr-03-2013-0055.
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Purpose – The purpose of this paper is to develop an analytical framework that challenges the condescending view of multinationals of emerging countries. In this paper, it is showed that emerging multinational companies (EMNCs) developed valuable resources that leveraged their internationalization strategies. Design/methodology/approach – An exploratory approach was used to investigate the internationalization strategies of EMNCs. A qualitative study was built on secondary data sources, particularly analysis of cases of the internationalization of Latin American companies. Findings – The internationalization strategies deployed by EMNCs are similar to the strategies of traditional multinationals (firms of developed countries). Similarly, EMNCs exploit, acquire or defend their resources in foreign markets. Additionally, the selection of each strategy depends on the availability, transferability and substitutability of the resources involved in the internationalization. Research limitations/implications – The traditional approaches that study the role of resources in the internationalization of the EMNCs have some shortcomings. It is worth conducting additional research including the approach developed here to advance in the comprehension of the behavior of EMNCs. Practical implications – Managers must identify and develop key resources to invest abroad. Additionally, managers need to take into account the characteristics of the resources of their firms to select an adequate strategy abroad. Originality/value – This paper shows that EMNCs are not resource laggards. Consequently, theoretical and empirical evidence is provided to advance the development of comprehensive theories of the internationalization of EMNCs. This paper offers academics and practitioners with a new focus to analyze the internationalization of EMNCs which are recognized as a driving force of the global economy.
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Gu, Jinlong, Yong Yang, and Roger Strange. "Location choice, ownership structure and multinational performance." Multinational Business Review 26, no. 3 (2018): 250–76. http://dx.doi.org/10.1108/mbr-12-2017-0105.
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Purpose This paper aims to link location choice and ownership structure to the debate on the multinationality–performance relationship. Design/methodology/approach This paper draws on a panel data set that covers 1,321 emerging economy multinational enterprises (EMNEs) and includes 4,227 observations from 44 emerging economies between 2004 and, 2013. Findings The empirical results find that multinationality has a positive effect on EMNEs’ performance, and that this positive effect is larger for their investments in developed countries than in developing countries. The study also finds that this positive effect of foreign operation in developed countries switch to negative at higher levels of multinationality for privately owned EMNEs than for state-owned EMNEs. Originality/value This paper provides new empirical evidence to support an institutional perspective of the internationalisation of EMNEs that are investing in developed countries, contributing to the multinationality-performance literature, highlighting the importance of foreign direct investment location decision and ownership structure.
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Zhong, Yifan, Jiuhua Cherrie Zhu, and Mingqiong Mike Zhang. "Expatriate Management of Emerging Market Multinational Enterprises: A Multiple Case Study Approach." Journal of Risk and Financial Management 14, no. 6 (2021): 252. http://dx.doi.org/10.3390/jrfm14060252.
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Expatriate management has evolved through the practices of developed economy multinational enterprises (DMNEs), with the aim of improving expatriate adaptability, cross-cultural adjustment, and performance. However, most of these studies focus on expatriates from developed countries and try to help DMNEs instead of emerging market MNEs (EMNEs). In a turbulent global economy, how EMNEs manage their expatriates when conducting business through their outward foreign direct investment (FDI) is understudied. This empirical study aims to address this research gap by utilising a qualitative approach and a multiple case study. It has conducted semi-structured interviews with expatriates, executives, and middle managers of Chinese MNEs in 2014. It contributes as one of the few to systematically examine expatriate related issues in the context of EMNEs with first-hand empirical evidence. The findings show that EMNEs are leapfrogging with their internationalisation and hence their expatriate policies are often ad hoc without systematic planning. Moreover, this study has contributed to practice, especially to EMNEs, regarding the way they need to improve their expatriate policies and practices.
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Herciu, Mihaela. "EMNCS – Lessons On The Way To An Innovationbased Development. Empirical Findings." Studies in Business and Economics 10, no. 2 (2015): 44–52. http://dx.doi.org/10.1515/sbe-2015-0019.
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Abstract The main focus of (the two parts of) this article is on the emerging countries and their development paths. Particularly, it emphasizes on the role and contribution of innovation (of all kinds, in all its forms) for multinational companies from emerging economies (EMNC); the entire research endeavor is placed under the auspices of the knowledge-based society - the one that makes knowledge the ultimate source of power, enabling entities to use and potentially multiply it at the same time at global scale. Analyzing the situation of some emerging economies (starting from their best ranked multinationals), the article draws some empirical and theoretical conclusions on the ways knowledge and innovation could become determinants of progress beyond national boundaries.
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Aureli, Selena, Massimo Ciambotti, and Alessandro Dragoni. "Emerging multinationals investing in developed countries." Management Research: Journal of the Iberoamerican Academy of Management 15, no. 1 (2017): 124–42. http://dx.doi.org/10.1108/mrjiam-02-2016-0643.
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Purpose The aim of this work is to investigate the key factors that lead to a successful deal in the case of acquisitions of Western companies by multinationals from emerging countries (EMNCs). Design/methodology/approach This study adopts a qualitative paradigm and uses a case study method as a tool of analysis. The case concerns Fondalmec, an Italian unlisted medium-sized joint stock company. The company was acquired in 2007 by the Indian multinational Endurance. Primary data were collected through semi-structured interviews and integrated with secondary data retrieved from relevant documents such as annual reports prepared before and after the acquisition. Findings Research findings show that EMNCs have some country-specific characteristics, which should be adequately assessed and realigned to the characteristics of the host country and targets’ resources during both the evaluation phase and the integration process. Research limitations/implications The research limitation is attributed to there being only one case study analysis. Practical implications The study recommends examining the country of origin of the acquirer and suggests EMNCs’ managers to prefer a “light-touch” integration of Western target companies to gain access to their intangible assets and achieve success. Originality/value This work differs from much of the existing literature on mergers and acquisitions because it focuses on EMNCs and analyses the target company together with the buyer and their post-operative development strategy. Furthermore, it is one of the few empirical research studies on non-listed companies, which are often overlooked given the greater difficulty of accessing data.
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Ogrean, Claudia. "EMNCS– Lessons On The Way To An Innovation-based Development. Setting The Backgrounds." Studies in Business and Economics 10, no. 2 (2015): 114–27. http://dx.doi.org/10.1515/sbe-2015-0024.
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Abstract The main focus of (the two parts of) this article is on the emerging countries and their development paths. Particularly, it emphasizes on the role and contribution of innovation (of all kinds, in all its forms) for multinational companies from emerging economies (EMNC); the entire research endeavor is placed under the auspices of the knowledge-based society - the one that makes knowledge the ultimate source of power, enabling entities to use and potentially multiply it at the same time at global scale. Analyzing the situation of some emerging economies (starting from their best ranked multinationals), the article draws some empirical and theoretical conclusions on the ways knowledge and innovation could become determinants of progress beyond national boundaries.
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Mondal, Arindam, and Amit Baran Chakrabarti. "Information and Communication Technology Adoption Strategies of Emerging Multinationals From India." Journal of Global Information Management 29, no. 5 (2021): 161–75. http://dx.doi.org/10.4018/jgim.20210901.oa9.
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The growth and rising prominence of multinationals from emerging markets (eMNCs) mark a significant phase in the evolution of the world economy in the last decade. This study investigates the effect of eMNCs' institutional embeddedness in terms of age on the adoption strategy of new and emerging information and communication technologies (ICT). Using panel multiple regression on a unique database of 3,756 observations from 394 Indian eMNCs in period of 2009 to 2019, the authors find that firm age has a unique negative impact on ICT investments of eMNCs. However, ownership is able to influence the negative impact of age in unique ways. Business group affiliation attenuates the impact of firm age on ICT investments, such that the reduction in ICT investments with firm age is less for BG-affiliated firms. Meanwhile, the higher the foreign institutional ownership in eMNCs, the lower the impact of firm age on ICT investments.
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Vieu, Marion, and Franck Brulhart. "Emerging Multinational Enterprises (EMNEs): A Homogeneous Category? A Typological Study." Academy of Management Proceedings 2017, no. 1 (2017): 13932. http://dx.doi.org/10.5465/ambpp.2017.13932abstract.
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Zhang, Ying, Etieno Enang, and Harry Sminia. "Post-acquisition integration of emerging market multinational corporations: a research agenda." Multinational Business Review 27, no. 1 (2019): 4–34. http://dx.doi.org/10.1108/mbr-11-2017-0093.
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PurposeMergers and acquisitions being done by emerging market multinational corporations (EMNCs) increasingly attract scholarly attention. However, conclusions concerning the nature and the theoretical underpinnings of EMNCs’ post-acquisition integration vary significantly, calling for an assessment of the state of affairs in this field. This paper aims to critically review the extant studies on EMNCs’ post-acquisition integration and to make a comparison with advanced economy multinational corporations’ (AMNCs’) post-acquisition integration, in order to formulate an agenda for future research.Design/methodology/approachA sample of papers from 21 leading journals in the fields of international business, management, human resource management and strategy published between 1991 and March 2018 are included in the literature review. Qualitative content analysis was conducted.FindingsThe topics are clustered into the four themes of strategies and processes, influencing factors, acquisition performance and antecedents of post-acquisition integration of EMNCs. The literature on EMNCs and AMNCs converges with regard to the broad methodological and theoretical approaches that have been adopted. Yet, EMNCs and AMNCs diverge on the detailed strategies and behavioral patterns of post-acquisition integration, mostly as a consequence of country of origin factors.Originality/valueThe paper identifies a number of deficiencies within existing research and suggests how they can be addressed in future research. By doing so, the paper deepens the argumentation of the third camp in the “Goldilocks debate” (Cuervo-Cazurra, 2012) arguing that the phenomenon of post-acquisition of EMNCs is “just right” for theory extension and development.
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LEMOS, FERNANDA. "EMERGING MARKET MULTINATIONAL COMPANIES (EMNCs): CHALLENGES AND OPPORTUNITIES." Revista de Administração de Empresas 60, no. 3 (2020): 242–44. http://dx.doi.org/10.1590/s0034-759020200307.
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Liou, Rushiun, Kevin Lee, and Scott Miller. "Institutional impacts on ownership decisions by emerging and advanced market MNCs." Cross Cultural & Strategic Management 24, no. 3 (2017): 454–81. http://dx.doi.org/10.1108/ccsm-07-2014-0087.
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Purpose Emerging-market multinational companies (EMNCs) utilize cross-border merger and acquisitions (M&As) to acquire strategic assets that compensate for their resource deficiencies. Therefore, developed markets have become important destinations for EMNCs. Institutional distance constitutes a major source of competitive disadvantage for foreign firms competing with indigenous firms. The purpose of this paper is to examine the ownership pattern of cross-border M&As in the USA, and determine if EMNCs respond to institutional distance differently than advanced-market multinational companies (AMNCs). Design/methodology/approach Based on the extant literature in institutional theory as well as internationalization strategy, a quantitative study was carried out. Hypotheses were proposed and tested using fixed effects panel regressions. Findings This paper finds that both AMNCs and EMNCs take smaller ownership positions when there is greater cognitive and normative distance. The negative association is stronger for AMNCs than for EMNCs. Further, the larger the regulative distance in the positive direction, meaning a higher level of development in the host market than in the home market, the more AMNCs and EMNCs are led to opt for a higher ownership position, with EMNCs being less influenced by regulative distance. Research limitations/implications Though findings are robust and stable, this study is limited to observations that only have US target firms. Originality/value By integrating the literature from institutional theory and strategy, this paper offers a clearer understanding and distinction of the acquisition decisions made by EMNCs and AMNCs.
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Gao, Qiuling, Zijie Li, and Xinli Huang. "How EMNEs choose location for strategic asset seeking in internationalization?" Chinese Management Studies 13, no. 3 (2019): 687–705. http://dx.doi.org/10.1108/cms-06-2018-0573.
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Purpose Based on the strategy tripod perspective, this study aims to address how emerging economy multinational enterprises (EMNEs) make a strategic decision of choosing a foreign location for their strategic asset seeking and under what mechanism EMNEs make foreign direct investment (FDI) location choice. Design/methodology/approach This paper first reviews the literature on strategy tripod and strategic asset seeking strategy of EMNEs. Then, six cases of Chinese multinational enterprises operating in manufacturing industry have been introduced, emphasizing on interactions within three dimensions of strategy tripod framework, namely, resource-based dimension, industry-based dimension and institution-based dimension. By triangulating with multiple sources of archival and interview data, this paper identified a conceptual model presenting location choice mechanisms. Findings Based on a comparative multi-case study, four mechanisms of EMNEs’ location choice when seek strategic asset by FDI within a strategy tripod framework have been revealed. Specifically, EMNEs make their strategic decision of choosing a foreign location for their strategic asset seeking under mechanisms of seeking complementary resources based on industry characteristics; echoing with institutional dimension of home country when exploitation of resource; matching institutional dimension of host country when consider industry fitness; and institutional leveraging combined with understanding of resource and industry dimensions inside strategy tripod. Originality/value The findings shed novel insights into the mechanisms under which EMNEs choose their location for strategic asset-seeking FDI. It also broadens the strategy tripod framework by looking deeper into the characteristics of each dimension within a new research context of EMNEs’ FDI location choice.
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Gugler, Philippe. "Emerging countries’ country-specific advantages (CSAs) and competitiveness of emerging market multinational enterprises (EMNEs)." Competitiveness Review: An International Business Journal 27, no. 3 (2017): 194–207. http://dx.doi.org/10.1108/cr-02-2016-0016.
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Purpose A significant stream of literature focuses on host countries’ locations when explaining why firms internalize some of their activities in specific countries. At first glance, home location schemes and specificities seem to have attracted less attention in the scientific community. The purpose of this contribution is to provide a literature review linked to the specific issue of emerging countries’ country-specific advantages and the competitiveness of emerging market multinational enterprises. Design/methodology/approach The approach is to present the main theoretical developments related to the role of home countries in the internationalization process of domestic firms in general and as far as the home context of emerging countries is concerned. Findings A rigorous analysis of the literature shows that theoretical developments and empirical studies on international business do refer explicitly or at least implicitly to the role of home countries in the international expansion of firms. Originality/value The value of this review is to develop the main streams of the literature and to serve as a basis for the other contributions published in this area.
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Patel, Parth, Brendan Boyle, Mark Bray, Paresha Sinha, and Ramudu Bhanugopan. "Global staffing and control in emerging multinational corporations and their subsidiaries in developed countries." Personnel Review 48, no. 4 (2019): 1022–44. http://dx.doi.org/10.1108/pr-07-2017-0211.
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Purpose The purpose of this paper is to examine the control mechanisms used by multinational corporations (MNCs) from emerging economies to manage their subsidiaries in developed countries and their implications for human resource management practices. Design/methodology/approach The paper draws on data collected through in-depth case studies and interviews with senior subsidiary managers of 12 major Indian information technology (IT) MNCs operating in Australia. Findings Indian IT MNCs rely heavily on the use of people-centric controls exerted through global staffing practices (via the transfer of parent-country nationals), which, in turn, influence their subsidiary’s discretion over their HR practices. The use of people-centric controls allows Indian IT multinationals to replicate parent-country HRM practices in their Australian subsidiaries in an ethnocentric manner and significantly leverage the people-based competitive advantages from India through short- and long-term expatriate assignments. Research limitations/implications The study investigates control and HRM practices from a single country and a single industry perspective. It provides an insight into the normative means of control in foreign subsidiaries of MNCs and enhances our understanding by explaining the integrated relationship that control mechanisms (and their people-centric components) have with HRM practices including the global staffing approaches and expatriate management practices of emerging MNCs. Practical implications Indian MNCs are using their business model to leverage the Australian immigration and skilled visa programme to maintain cost advantages. However, the immigration legislation in developed countries needs to be capable of allowing emerging multinational corporations (EMNCs) to maintain such advantages as developed countries seek to attract foreign direct investment from emerging economies. Originality/value The results indicate that the control practices of EMNCs are similar to the controls exerted by MNCs from developed countries. They also show that EMNCs do not adopt a portfolio approach to global staffing, and that the people-centric components of their control have a clear impact on their subsidiaries’ HRM practices.
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Aharoni, Yair. "To understand EMNEs a dynamic IB contingency theory is called for." International Journal of Emerging Markets 9, no. 3 (2014): 377–85. http://dx.doi.org/10.1108/ijoem-09-2013-0151.
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Purpose – This paper argues that international business (IB) theory needs to adapt to the changes that have occurred in the global economy when the world was divided into rich market economies, communist countries and poor economies. Changes in ideologies and technologies has opened up opportunities for emerging market multinational enterprises and the paper offers guidelines for a dynamic IB contingency theory to acknowledge these changes and learning. Design/methodology/approach – This is a conceptual paper which is designed to offer an alternative contingency perspective on IB theory. Findings – IB scholars should recognize the influence of several contingent variables such as the institutional environment, political systems, government-business-NGO relations, social norms-ethical behavior, country size and industry. The structural characteristics of an industry, their importance to the country and the regulatory regime are major variables in understanding how and whether firms can become emerging multinational enterprises (EMNEs). The paper finds that emerging market government and enterprises have strategies for building knowledge intensive industries through mergers and acquisitions and exploit these on a global scale. Research limitations/implications – IB scholars should recognize that multinational enterprises learn and they adapt to the global environment. Scholars should develop strategies or a way of thinking which is different to the status quo to take advantage of the new and changing circumstances where the rules of the game are different to those in the researcher's home country. Practical implications – The removal of trade barriers and government restrictions on trade and technological developments means that EMNEs and governments should not rely on protection and subsidies but should compete on being unique and adopt differentiated strategies in niche but global marketplaces.
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Moeller, Miriam, Jane Maley, Michael Harvey, and Marina Dabic. "People management and innovation in emerging market multinationals." Journal of Management Development 35, no. 4 (2016): 530–48. http://dx.doi.org/10.1108/jmd-04-2015-0053.
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Purpose – As the internationalization process dictates the existence of cross-country networks it is essential to explore avenues that allow emerging market multinationals (EMNCs) to share and receive knowledge that can benefit them locally and globally. The purpose of this paper is to explore this conundrum by addressing the significance of creating a global mindset in individuals and across the multinational corporation. In the paper the authors articulate the mechanisms that influence global managers’ abilities to engage effectively with other global managers across borders. Design/methodology/approach – This is a conceptual and theoretical piece. Findings – The authors argued that global managers engage in reciprocal learning processes to obtain new, innovative knowledge about other countries’ environments and business practices. The authors furthermore suggest that the effectiveness of new knowledge creation is dependent upon the appropriate input, throughput, and output competencies of those involved in the reciprocal learning process. Originality/value – Proper people management plays a crucial role in fostering an environment where employees’ commitment will lead to organizational innovation. Propositions foreshadowing in the new, innovative knowledge creation process across cultural and personal levels are articulated.
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Al-Kwifi, Osama Sam, Allam K. Abu Farha, and Wael S. Zaraket. "Competitive Dynamics Between Multinational Companies and Local Rivals in Emerging Markets." FIIB Business Review 9, no. 3 (2020): 189–204. http://dx.doi.org/10.1177/2319714520939673.
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Multinational Companies from Emerging Economies (EMNCs) have become key players in the global economy. EMNCs have started to operate in highly dynamic, competitive environments where they are faced with competition from multinational companies (MNCs) from developed economies. This study applied Mutlu et al.’s (2015) awareness–motivation–capability (AMC) framework to the airline industry to investigate how EMNCs outperform MNCs. The development of each round of Mutlu et al.’s framework was tested using secondary data sources that cover 16 years, from 2001 to 2016. A fourth round, relating to the determination of ‘who will be the market leader’, was added to the framework and tested. The findings demonstrate that firms’ awareness and capabilities evolve in each round to develop the competitive advantages required to enhance their market position. The complex nature of competition requires firms to analyse information constantly to define key influential factors and to build essential capabilities and resources to initiate an action strategy quickly. From a managerial perspective, it is important for managers to build a comprehensive view of the competition and understand how this competition is evolving over time, to develop capabilities, pursue new opportunities and predict competitors’ responses.
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Jin, Jun, Zhengyi Zhang, and Liying Wang. "From the Host to the Home Country, the International Upgradation of EMNEs in Sustainability Industries—The Case of a Chinese PV Company." Sustainability 11, no. 19 (2019): 5269. http://dx.doi.org/10.3390/su11195269.
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With the internationalization of firms from emerging-markets, the upgradation along the global value chain of emerging-market multinational enterprises (EMNEs) has attracted the attention of academics and industries. However, the role of upgradation of EMNEs in a host country to the transition of EMNEs in the home country is ignored. This study explored how EMNEs from emerging-markets could upgrade their operations in their home countries driven by the transformation of subsidiaries in host countries. An in-depth analysis of Company S was conducted to elaborate on the resources and trigger time a firm needs to transform the function of a subsidiary in the host country, and the upgradation of the firm in the home country during the internationalization process. Research on the internationalization of Company S suggested that with the complementary capabilities and markets as the fundamental basic resources, the industrial crisis triggers the firm’s upgrading in the host country. In addition, the intrafirm (internal) market mechanism makes it possible to sustain the upgrading process without conflicts between subsidiaries. Moreover, synergies will develop through interactions with subsidiaries, owing to complementary capabilities and the internal market. The synergetic development promotes the transition of firms in the home country and emphasizes the complementarity of the manufacturing and engineering service. Finally, this study demonstrates the two-stage international upgrading process, in which the international upgrading of firms in the home country is driven by the development and transition of the subsidiary in the host country, which provides contributions to the internationalization upgrading strategy and process of firms from emerging-markets.
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Yang, Yanan, and Christoph Lütge. "Dynamic integration paths of emerging multinational enterprises in advanced markets." Review of International Business and Strategy 30, no. 1 (2019): 1–23. http://dx.doi.org/10.1108/ribs-05-2019-0052.
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Purpose This paper aims to examine dynamic multi-stage post-merger integration (PMI) evolutions by Chinese multinational enterprises (CMNEs) in the German market and their potential influencing factors. Design/methodology/approach A data set was collected from 25 interviews with 21 respondents from six Chinese acquisition cases in Germany, and a comparative multi-case study and content analysis were applied. Findings The results reveal that Chinese acquirers take segmented linear integration path in Germany from nearly no integration to organisational integration and then to production integration. It contains three sub-paths: the P-O-O path (partnering–organisational optimisation–production optimisation), the P-P-P path (preservation–organisational preservation–production preservation) and the P-C-C path (preservation–organisational centralisation–production confusion). The initial nearly no integration condition is mainly impacted by asymmetric information and the targets’ strategic positions, whereas different organisational and production integration degrees in mid- and long-term stages are primarily influenced by Chinese acquirers' different dynamic capabilities. Moreover, Chinese acquirers' corporate ownership is not found to be a significant factor that influences CMNEs to take different integration strategies in different PMI stages. Research limitations/implications This paper contributes to broaden emerging multinational enterprises’ (EMNEs) PMI theory by adding dynamic perspective and provides suggestions for mergers and acquisitions (M&As) practitioners to identify integration options and avoid integration pitfalls in different integration stages. Originality/value Existing works identified that EMNEs prefer to partner with the targets in advanced markets, but lacked a dynamic perspective to disclose whether the partnering strategy would be adjusted or not over time. This study is the first to explore multi-stage integration changes and is one of the few studies that recognise the interaction of the integration strategy with the dynamic capability of the acquiring enterprises.
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Zhu, Cherrie J., Helen De Cieri, Di Fan, and Mingqiong Mike Zhang. "Expatriate management in emerging market multinational enterprises (EMNEs): reflection and future research agenda." International Journal of Human Resource Management 29, no. 11 (2017): 1787–98. http://dx.doi.org/10.1080/09585192.2017.1335997.
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Buckley, Peter J., Stefano Elia, and Mario Kafouros. "FDI from emerging to advanced countries: some insights on the acquisition strategies and on the performance of target firms." ECONOMIA E POLITICA INDUSTRIALE, no. 1 (March 2011): 181–97. http://dx.doi.org/10.3280/poli2011-011007.
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The paper deals with acquisitions from emerging to advanced countries and the performances of the target firms. We have used descriptive statistics to investigate the strategies and the impact of the entry of emerging multinational companies (EMNCs) from Brazil, Russia, India and China (BRIC) on the performance of firms acquired in Europe, North America and Japan between 2000 and 2007. The results show that EMNCs do not always acquire firms with a high pre acquisition performance and that they do not significantly increase the post acquisition profitability of the target firms. Nevertheless, EMNCs contribute to increase target firms' productivity and sales and to slow down their loss of jobs. We also show the importance of the acquisition experience of the acquiring firms. Experienced EMNCs not only acquire firms with a higher pre acquisition performance, but also contribute to increase more significantly the productivity and sales of the target firms. Ultimately, we highlight the differences in the sizes and the technology intensity of the target firms acquired by experienced and inexperienced EMNCs to provide further insights about the strategies and the effects of acquisitions from emerging to advanced countries.
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Robertson, Nic, and John M. Luiz. "Exploiting emerging market complementarities." Multinational Business Review 27, no. 1 (2019): 54–76. http://dx.doi.org/10.1108/mbr-02-2018-0016.
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PurposeThis paper aims to explore the delayed, then accelerated, internationalisation of an emerging multinational enterprise (EMNE), with a particular focus on the media technology sector, and how it exploited complementarities between emerging markets.Design/methodology/approachThe research is qualitative in nature and focuses on the expansion of a South African media technology EMNE case study that has a footprint in over 130 countries and has one of the largest market capitalisations of any media company outside the USA and China.FindingsEMNEs have unique capabilities in navigating uncertain institutional environments in emerging markets and are able to capitalise upon the institutional complementarities between their home and host countries. This may facilitate the recognition of market opportunities and the harnessing of new technologies to meet these opportunities in complementary markets for accelerated internationalisation.Practical implicationsEMNEs must capitalise upon the institutional complementarities between home and host country locations and use this to take advantage of identified market opportunities. This creates the possibility for a process of accelerated internationalisation. New technologies are creating particular market opportunities in emerging markets which can be exploited by EMNEs.Originality/valueThe authors provide a framework which illustrates how an EMNE can exploit complementarities between emerging markets to identify market opportunities, capitalise upon institutional similarities and harness new technologies in the process.
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Park, Byung Il, and Taewoo Roh. "Chinese multinationals’ FDI motivations: suggestion for a new theory." International Journal of Emerging Markets 14, no. 1 (2019): 70–90. http://dx.doi.org/10.1108/ijoem-03-2017-0104.
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Purpose The purpose of this paper is to complement the conventional international business (IB) theory, the OLI perspective, which is good at explaining the foreign direct investments (FDIs) undertaken by developed market multinational corporations (DMNCs). This study also suggests a new theoretical framework, namely, the OILL paradigm, that is able to encompass FDIs from emerging market multinational corporations (EMNCs) toward developed economies. Design/methodology/approach The data comprising 206 Chinese MNCs, which completed international mergers and acquisitions (IMAs), were obtained from Zephyr. By using these data, logical regressions are conducted to statistically confirm that we should not omit the learning motivation if we want to adequately understand the FDI phenomenon by encompassing investment flow from developing (or emerging) to developed countries. Findings The results based on this data set indicate that EMNCs often try to enter developed economies with the motivation to seek sophisticated foreign host knowledge that is not available internally. In particular, they tend to use IMA strategies when they want to learn from heterogeneity (i.e. inter-industry mergers and acquisitions) and absorb advanced technologies from DMNCs. Research limitations/implications By shedding light on the recent new trend in FDI (i.e. FDI from emerging countries to developed economies), the study provides useful theoretical implications, as well as suggesting scholarly contributions. However, we should acknowledge that there are some limitations to this study. First, the study explores only Chinese MNCs. Second, learning motivations need to be minutely and precisely measured by other studies. Third, this study argues that FDI from EMNCs to DMNCs is triggered by the former’s motivation concerning knowledge acquisition. However, the type of knowledge should be considered, and this is perhaps another avenue for future research. Practical implications Conventional IB theories, such as the OLI paradigm and internalization theory, have long sought to answer the question of why DMNCs go for foreign markets, in spite of the presence of the liabilities of foreignness, and focused on their main investment motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations). For this reason, these theories do not adequately capture the primary FDI motivations of EMNCs, and consequently, they are unable to see the big picture when it comes to the FDI phenomenon. Based on this idea, the authors complement the well-known triad motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations) by adding the knowledge-seeking motive and contribute to the evolution of IB theories by suggesting a new theory, which is the OILL paradigm. Originality/value The study contributes to the extant literature in the field of IB in two key ways. First, it examines EMNCs’ central motivations in conducting FDI where empirical research is sparse. By doing this, this paper attempts to solve the query indicated above (i.e. why MNCs choose FDI in spite of the presence of the liabilities of foreignness), and it offers a new theory (i.e. the OILL paradigm).
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Zheng, Ying, Daying Yan, and Bing Ren. "Institutional distance, firm heterogeneities, and FDI location choice of EMNEs." Nankai Business Review International 7, no. 2 (2016): 192–215. http://dx.doi.org/10.1108/nbri-10-2015-0022.
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Purpose This paper aims to propose an integrated framework combining the cost-reduction rationale and the institution-leveraging rationale to explain how institutional distance, both formal and informal, influences emerging multinational enterprises (EMNEs)’ foreign direct investment (FDI) location choice. This paper also explores the moderating role of EMNEs’ FDI experience and strategic intent on value chain positioning as a reflection of firm heterogeneities, on the link between institutional distance and location choice. Design/methodology/approach This paper tests the hypotheses based on a firm-level longitudinal data set of FDI by Chinese EMNEs. The unique data are manually collected from Chinese companies listed on Shenzhen and Shanghai Stock Exchanges, composed of 250 FDI entries of 122 manufacturing firms from 2006 to 2010. The conditional logit model is used to estimate the proposed main effect and moderating effect. Findings Cultural distance does not deter Chinese EMNEs’ entrance in general, but firms investing in low value-added manufacturing subsidiaries are more likely to choose culturally similar countries than those investing in high value-added subsidiaries such as in upstream R&D and downstream marketing. Formal institutional distance with positive direction promotes Chinese EMNEs’ entrance, and this effect is enhanced when firms have less FDI experience and have the strategic intent to invest in high value-added subsidiaries. Originality/value This paper contributes to the current literature by identifying a holistic view of the institutional influences on FDI location choice of EMNEs and revealing how firm-level heterogeneities, particularly FDI experience and strategic intent of subsidiary value chain positioning, shape the boundary conditions of the institutional effects in different ways.
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Liu, Ju. "The roles of emerging multinational companies’ technology-driven FDIs in their learning processes for innovation." International Journal of Emerging Markets 14, no. 1 (2019): 91–114. http://dx.doi.org/10.1108/ijoem-07-2017-0232.
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Purpose The purpose of this paper is to contextually theorise the different patterns of emerging multinational companies’ (EMNCs’) learning processes for innovation and the different influences of their technology-driven FDIs (TFDIs) on the processes. Design/methodology/approach A comparative case study method and process tracing technique are employed to investigate how and why firms’ learning processes for innovation took place, how and why the TFDIs emerged and influenced the firms’ learning processes in different ways. Findings The paper identifies two different patterns of learning process for innovation (Glider model vs Helicopter model) and two different roles of the case firms’ TFDIs (accelerator vs starter) in the different contexts of their learning processes. It is found that the capability building of the domestic wind energy industry has an important influence on the case of EMNCs’ learning processes and thus on the roles of their TFDIs. Research limitations/implications The limitation of the paper lies in its small number of cases in a specific industry of a specific country. The two contextually identified learning models and roles of TFDIs may not be applied to other industries or other countries. Future research should investigate more cases in broader sectoral and geographic scope to test the models and also to identify new models. Practical implications For EMNCs, who wants to use the Helicopter model to rapidly gain production and innovation capability, cross-cultural management and integration management are crucial to practitioners. For emerging countries with ambitions to explore the global knowledge and technology pool, besides of the EMNC’s capability building, the capability building in the domestic industries should not be overlooked by policy makers. Originality/value The paper develops a dynamic and contextual analytical framework which helps to answer the important questions about how and under what context a TFDI emerges and influences firm’s learning process for innovation. It theorises the EMNCs’ learning process and TFDIs in the context of the development of the domestic industry. It strengthens the explanatory power of the learning-based view and adds new knowledge to the current FSA/CSA discourse in the international business literature.
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Zhong, Yifan, Cherrie Jiuhua Zhu, and Mingqiong Mike Zhang. "The management of Chinese MNEs’ expatriates." Journal of Global Mobility 3, no. 3 (2015): 289–302. http://dx.doi.org/10.1108/jgm-12-2014-0053.
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Purpose – Expatriate management is a popular topic in international human resource management (IHRM) because expatriates play a critical role in a firm’s international business operations. The purpose of this paper is to discuss the existing studies that often examine the expatriate management of developed country multinational enterprises (MNEs), aiming to help them identify, employ, prepare and retain expatriates and address challenges these MNEs may face, while how MNEs from emerging countries manage their expatriates is understudied. Design/methodology/approach – The knowledge of expatriate management from emerging market MNEs (EMNEs) may help us understand whether there is anything new for IHRM theory and practice. This conceptual paper aims to address this research gap by selecting China, a leading emerging economy, and reviewing the existing literature in both English and Chinese to examine the status quo of the expatriate management in Chinese MNEs to highlight challenges facing these MNEs in managing their expatriates when conducting outward foreign direct investment (FDI). Findings – This paper aims to make theoretical contributions by generating research propositions to address an under-researched area, i.e., how EMNEs manage their expatriates and the role of their expatriates in the outward FDI. Originality/value – No other person’s work has been used in the main text of the paper. This paper has not been submitted for the award of any other degree or diploma in this or any other tertiary institution.
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Kim, Eun Woo, Soonkyoo Choe, and Jooyoung Kwak. "Multinational companies and the corporate social responsibility at home: the stakeholder approach." Management Decision 57, no. 9 (2019): 2383–400. http://dx.doi.org/10.1108/md-01-2018-0109.
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Purpose The purpose of this paper is to integrate stakeholder and international business (IB) theories to explore the relationship between the international diversification of emerging-market multinational corporations (EMNCs) and corporate social performance (CSP) in their home markets. While the IB literature generally assumes a positive effect from international diversification on CSP as a result of global learning, the study aims at investigating the complicated effects in the link to the stakeholder theory. Design/methodology/approach This paper used combined sources of public survey data (corporate social responsibility (CSR) of the Korean firms) and archival data (foreign direct investment and corporate data). A truncated regression is used for statistical model. Findings International diversification helps MNCs to enhance CSP in their home countries. Thus, EMNCs can develop CSR capabilities at the global level, thereby benefiting domestic stakeholders. Also, significant investment in domestic research and development (R&D) and advertising negatively moderates the relationship between international diversification and domestic CSP. In this regard, expanding R&D and advertising facilitates global competitiveness. Moreover, as international diversification increases, EMNCs may redirect resources and re-orient CSR policies toward foreign stakeholders. Consequently, the relationship between international diversification and domestic CSP weaken. Practical implications Acceleration in international diversification may weaken domestic CSP, which arises from transformation into the global enterprises. Originality/value The study highlights the difficulties of EMNCs in serving domestic stakeholders effectively when their businesses are increasingly internationalized.
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Jayakumar, Tulsi. "Air Asia India: competing for air space in an emerging economy." Competitiveness Review: An International Business Journal 27, no. 5 (2017): 516–32. http://dx.doi.org/10.1108/cr-10-2016-0072.
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Purpose The purpose of this paper is to understand the competitive landscape of emerging market economies (EMEs) and the implications of business models and strategies used by multinational enterprises (MNEs) to enter and operate in such landscapes. It does so by considering the aviation sector in an emerging economy – India, and by studying the strategies pursued by AirAsia India – the Indian joint venture of AirAsia Investment Limited and Tata Sons.. Design/methodology/approach The paper follows a case study approach. Secondary data sources from the library, company website and newspaper articles have been used to build a case that would encourage students to discuss and analyze the competitive strategies followed by MNEs in EMEs. Findings Emerging markets offer attractive investment opportunities to MNEs across several industries. However, their markets for intermediate goods and services possess imperfections. Competitiveness in such markets will require going beyond country-specific and firm-specific advantages. MNEs will need to integrate location-specific advantages with internalization advantages of these market imperfections to operate successfully in the complex environments of EMEs. A one-size-fits-all approach of transposing successful strategies from home markets will fail to create value. Practical implications MNEs, such as AirAsia, will need to develop participatory skills to leverage the location-specific-advantages of EMEs and reduce their own curse of foreignness to be able to succeed in EMEs. Originality/value This paper contributes to extant literature by studying the competitive strategies pursued by a global leader in an EME. The case of the “World’s Best Low-Cost Airline” – AirAsia’s India operations seeks to go beyond the Eclectic Paradigm and the country-specific and firm-specific advantages framework, to provide a location-internalization paradigm for operating in EMEs.
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Osei, Collins, Joseph Amankwah-Amoah, Zaheer Khan, Maktoba Omar, and Mavis Gutu. "Developing and deploying marketing agility in an emerging economy: the case of Blue Skies." International Marketing Review 36, no. 2 (2019): 190–212. http://dx.doi.org/10.1108/imr-12-2017-0261.
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PurposeIn almost every large business, there is a growing recognition of the importance of organisational agility in improving their marketing responsiveness and business survival. However, limited insights have been offered by scholars on multinational enterprises and their marketing agility in emerging markets context. The purpose of this paper is to examine the various manifestations of agility and the various strategies adopted to sustain agility by an emerging economy multinational enterprise (EMNE) which started in the late 1990s as a small firm operating within the fresh fruit and juice industry in Africa.Design/methodology/approachThe authors utilised empirical qualitative data from an emerging African economy to develop a three-stage model of how agility manifests overtime.FindingsThe authors find that successful development and deployment of international marketing agility strategy adopted by an EMNE from emerging markets hinge on building relationships, being socially responsible and being innovative in standardisation and adaptation in response to, and in anticipation of, the rapidly changing business environment.Research limitations/implicationsThis research is based on data from one organisation. Future research can consider using multiple cases from different countries to further understand marketing agility in emerging markets and when such firms internalise into developed markets.Originality/valueThis paper extends research on standardisation/adaptation debate and research on agility, to address the gap on international marketing agility. Hitherto, there was no significant research on marketing agility in emerging markets which focused on highly perishable products such as fruits. This research provides unique insight into how marketing agility could be developed, deployed and sustained in emerging African markets.