Institutional voids, liability of origin, and presence of women in TMT of emerging market multinationals

Purpose The purpose of this study is to use the rise of emerging-market multinationals as a vehicle to explore how a firm’s country of origin influences its internationalization. Design/methodology/approach This paper is a conceptual paper. Findings We argue that the home country’s institutional and economic underdevelopment can influence the internationalization of firms in two ways. First, emerging-market firms may leverage innovations made at home to cope with underdeveloped institutions or economic backwardness to gain a competitive advantage abroad, especially in other emerging markets; We call this innovation-based internationalization. Second, they may expand into countries that are more developed or have better institutions to escape weaknesses on these fronts at home; we call this escape-based internationalization. Research limitations/implications Comparative disadvantages influence the internationalization of the firm differently from comparative advantage, as it forces the firm to actively upgrade its firm-specific advantage and internationalize. Practical implications We explain two drivers of internationalization that managers operating in emerging markets can consider when facing disadvantages in their home countries and follow several strategies, namely, trickle-up innovation, self-reliant innovation, improvisation management, self-reliance management, technological escape, marketing escape, institutional escape and discriminatory escape. Originality/value We explain how a firm’s home country’s comparative disadvantage, not just its comparative advantage, can spur firms its internationalization.

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Catch-up innovation in emerging market multinationals

10.32469/10355/78129 ◽

2020 ◽

Author(s):

◽

Li Chen

Keyword(s):

Multinational Firms ◽

Resource Constraints ◽

Emerging Market ◽

Measurement Model ◽

University Of Missouri ◽

Emerging Market Multinationals ◽

Output Performance ◽

Moderating Factors ◽

Catch Up ◽

Product Output

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT REQUEST OF AUTHOR.] In this dissertation, I study how emerging market multinationals innovate to catch up with incumbent global leaders. By extending entrepreneurial perspectives into the emerging market context, I provide a comprehensive framework to account for EMNEs' distinctive innovation practices. In essay one, I conceptualize what I refer to as catch-up innovation as a multi-dimensional construct consisting of scarcity induced decisionmaking coupled with innovative behavior. I develop a measurement model of catch-up innovation and empirically test the validity of the measurement model using a sample of Chinese multinational firms. The results support my theoretical conceptualization. In essay two, I focus on EMNEs' aggressive commercialization practices, a unique behavioral dimension of catch-up innovation. I propose a model to explain how aggressive commercialization is influenced by institutional support factors (i.e., government encouragement and knowledge from research institutions) and resource constraints (i.e., lack of innovation capability, lack of brand equity, and lack of time). I also consider how aggressive commercialization influences EMNEs' product output performance. Additionally, I explore two sets of moderating factors, task-related capabilities and environment-related capabilities, in order to study the relationship between aggressive commercialization and product output performance. Findings from a sample of Chinese multinational firms support a majority of my hypotheses

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The Role of Corporate Governance for Acquisitions by the Emerging Market Multinationals: Evidence from India

SSRN Electronic Journal ◽

10.2139/ssrn.2965630 ◽

2017 ◽

Author(s):

Burcin Col ◽

Kaustav Sen

Keyword(s):

Corporate Governance ◽

Emerging Market ◽

Emerging Market Multinationals

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Institution building and institutional voids

International Journal of Emerging Markets ◽

10.1108/ijoem-02-2015-0027 ◽

2016 ◽

Vol 11 (1) ◽

pp. 18-41 ◽

Cited By ~ 36

Author(s):

Sheila M. Puffer ◽

Daniel J McCarthy ◽

Alfred M Jaeger

Keyword(s):

Economic Growth ◽

Institutional Theory ◽

Market Economy ◽

Emerging Economies ◽

Emerging Market ◽

Institution Building ◽

Institutional Voids ◽

Formal Institutions ◽

Content Type ◽

Bric Countries

Purpose – The purpose of this paper is to present a comparative analysis of institutions and institutional voids in Russia, Brazil, and Poland over the decades of the 1980s through to 2015. The paper asserts that Russia and Brazil could learn much from Poland regarding formal institution building and formal institutional voids that cause problems like corruption and limit economic growth. Design/methodology/approach – A comparative case study approach is utilized to assess the relative success of the three emerging market countries in transitioning to a market economy, viewed through the lens of institutional theory. Findings – Poland’s experience in building successful formal institutions and mitigating major institutional voids can be instructive for Russia and Brazil which have shown far less success, and correspondingly less sustained economic growth. Research limitations/implications – This paper demonstrates the value of applying institutional theory to analyze the progress of emerging economies in transitioning to a market economy. Practical implications – This country comparison can prove valuable to other emerging economies seeking a successful transition to a market economy. Social implications – Since institutions are the fabric of any society, the emphasis on institutions in this paper can have positive implications for society in emerging markets. Originality/value – This paper is an original comparison of two BRIC countries with a smaller emerging economy, utilizing institutional theory. Factors contributing to Poland’s success are compared to Russia and Brazil to assess how those countries might be positively informed by Poland’s experience in building and strengthening sustainable formal institutions as well as avoiding institutional voids and their associated problems.

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