scholarly journals Understanding foreign divestment: The impacts of economic and political friction

2022 ◽  
Vol 139 ◽  
pp. 675-691
Author(s):  
Ha Thi Thu Nguyen ◽  
Jorma Larimo ◽  
Pervez Ghauri
Keyword(s):  
2018 ◽  
Vol 20 (1) ◽  
pp. 1 ◽  
Author(s):  
Antonios Georgopoulos ◽  
Vasilios Sogiakas ◽  
Ioannis Dionysios Salavrakos

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeong-Yang Park ◽  
Yong Kyu Lew ◽  
Byung Il Park

Purpose The purpose of this paper is to answer why some multinational enterprises (MNEs) fail within the international business (IB) domain. Design/methodology/approach Conceptually, the study takes an organismic approach to MNE failure. Methodologically, it adopts an elite interview approach derived from the Delphi technique. Respondents are 39 IB and strategic management academics. Findings The paper finds that MNE failure is rooted in strategic leadership and capabilities (i.e. internal deterioration of organizational resources and strategies) and institutional pressures and differences, and these factors lead to deterioration of institutional legitimacy for an MNE. Originality/value The paper conducts a review of the firm failure and foreign divestment literature and undertakes an organismic approach to the analysis of MNE failure in the IB context. The paper provides useful insights on developing and implementing both market and non-market strategies for overcoming MNE internationalization failure.


Author(s):  
Rasto Ovin ◽  
Anita Macek

Especially since 1990s when capital flows liberalization took their intensive course, also the literature on foreign direct investment and respectfully cross-border mergers and acquisitions grew. On the other hand, although it was accompanying these processes, foreign divestment attracted much less attention. Speculating about the reasons for such situation, one could stress that following the nature of the balance of payments logic foreign direct divestment was not expected. Nevertheless, these processes were present. This chapter addresses some of the most important impacts of foreign direct investment that had been a subject to inverse processes later. The authors try to confront the drivers of these processes and search for different patterns obviously often deriving outside economic rationale from the position of a developed market economy. Using their expertize the authors connected concrete findings of their study with possible drivers of divestment. According to the finding the common nominator was mixed success with the transition in transition countries.


Finisterra ◽  
2012 ◽  
Vol 37 (74) ◽  
Author(s):  
Mário Vale ◽  
Rui Dias

INDUSTRIAL DIVESTMENT AND PORTUGUESE REGIONS WITHIN THE CHANGES IN THE INTERNATIONAL ECONOMIC SPACE. The spatial impacts of capital mobility, especially foreign capital, are becoming increasingly complex and are extent, divestment is, in essence, another strategic option of firms and it may not be necessarily negative for regions. Still, the impacts are not identical to investment. In economic analysis, divestment in certain activities is seen as necessary to achieve regional economic restructuring. However, the time gap between the creation and destruction of activities frequently causes social and economic problems in regions. Starting with a conceptual framework of divestment, we then analyse the recent evolution of industrial employment and product in order to provide a macro-economic framework for the analysis of employment creation and destruction flows that follows. This analysis has a sectorial and regional perspective aimed at identifying different paths by regions. Finally, specific cases of foreign divestment, which have recently occurred in Portugal, are discussed, illustrating not only a micro-economic perspective of divestment but also the changes in the global value chains that point to a (re)positioning of the country in the international division of labour.


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