Greenfield Entry Strategy of Multinational Enterprises in the Emerging Markets: Influences of Institutional Distance and International Trade Freedom

2017 ◽  
Vol 23 (2) ◽  
pp. 140-170 ◽  
Author(s):  
Ahmad Arslan ◽  
Jorma Larimo
Keyword(s):  
International Trade ◽  
Emerging Markets ◽  
Multinational Enterprises ◽  
Institutional Distance ◽  
Entry Strategy

scholarly journals Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110074
Author(s):  
Zhiyi Qiu ◽  
Rong Chen ◽  
Ye Yang
Keyword(s):  
Empirical Study ◽  
Venture Capital ◽  
Emerging Markets ◽  
Cultural Distance ◽  
Cross Border ◽  
Entry Strategy ◽  
China Mainland ◽  
Entrepreneurial Activities

Cross-border venture capitals (CBVCs) are increasingly prevailing in recent decades, inter alia in emerging markets like China. The venture capital (VC) firms investing outside their home countries are faced with foreignness which is broadly regarded as liability. The primary aim of this article is to contribute to our understanding how foreignness affects VC’s strategy when entering emerging markets, particularly with respect to the foreignness originated from cultural distance. The data consist of over 5,000 CBVC deals taking place in China mainland from 1988 to 2016. Our empirical study shows that, with foreignness growing, it turns from liability into advantage in the context of CBVCs. We find an inverse U-shape relationship between foreignness and syndication, with VC firm’s reputation as the moderator. Besides, foreign VC firms establish local subsidiary when faced with foreignness, which serves as alternative to syndication. The key contribution of this article is that foreignness turns from liability into advantage in emerging markets, which exerts a curvilinear impact on the entry strategy of VC firms. This study advances the knowledge of foreignness and VC strategy, and sheds new light on entrepreneurial activities in emerging markets.

scholarly journals CSR reporting by Chinese and Western MNEs: patterns combining formal homogenization and substantive differences

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Irina Ervits
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Qualitative Content Analysis ◽  
Developed Economies ◽  
Csr Reporting ◽  
Business Operations ◽  
Advanced Economies ◽  
Chinese Mnes ◽  
Complex Picture ◽  
Corporate Social

AbstractIn light of the growing economic might and intensification of global activities of Chinese multinational enterprises (MNE), this paper looks into the nature of their corporate social responsibility (CSR) reporting. CSR communications of the largest Chinese companies and their counterparts from advanced economies have been compared based on quantitative and qualitative content analysis of CSR reports. A mixed method approach has been rarely utilized in the analysis of CSR reporting. To analyze CSR reports the paper uses a two-dimensional conceptual framework based on Wood (Acad Manag Rev 16:691–717, 1991); Jamali and Mirshak (J Bus Ethics 72:243–262, 2007) and Lockett, Moon and Visser (J Manag Stud 43:115–136, 2006); Moon and Shen (J Bus Ethics 94:613–629, 2010). The findings indicate that quantitatively Chinese MNEs display patterns of CSR reporting comparable to major MNEs in developed economies. This paper argues that just like MNEs from developed economies Chinese MNEs use a global CSR reporting template as a convenient tool to align and harmonize various isomorphic pressures. However, qualitatively substantive discrepancies in content have been also identified due to national or other contextual characteristics. The analysis reveals a complex picture of national and international isomorphic forces at play. The paper addresses the lack of consensus concerning convergence/divergence of CSR reporting across the globe and, more specifically, between developed economies and emerging markets. In this respect this paper responds to the general call for research looking into various aspects of business operations, including CSR reporting, of MNEs from emerging markets.

PRICE RISK HEDGING IN INTERNATIONAL TRADE OF AGRICUL-TURE AND FOOD COMMODITIES USING OPTIONS

2020 ◽  
Author(s):  
Nikolai Nalbandian ◽  
Keyword(s):  
International Trade ◽  
Multinational Enterprises ◽  
Practical Importance ◽  
Sustainable Growth ◽  
Price Risk ◽  
Continuous Increase ◽  
Economic Agents ◽  
Risk Hedging ◽  
Option Contracts ◽  
Food Commodities

The focus of this article is an employment of option contracts by economic agents when hedging a price risk in international trade of agriculture and food commodities. Despite a serious downturn in the world economy accompanied with major logistics and global value chains disruptions caused by Coronavirus disease in 2020, international agri-food trade demonstrates a sustainable growth supported by a constantly waxing demand due to continuous increase in population and improvement in living standards as well as a higher supply due to modern technological progress. It therefore implies that a comprehensive price risk management system should be introduced to avoid or minimize market participants’ exposure to potentially adverse future events. The article is devoted to the study of the key advantages of using options as an integrated element within such a system. Comparative analysis of future and option contracts is conducted to better understand their respective application depending on a risk profile of an event. The economic nature of options is presented from the perspective of a concept of price insurance that provides for an existence of a certain risk premium determined by market forces which is paid by economic agents to obtain such a price guarantee. Fundamental characteristics of an option contract as a financial derivative, its types and features, reason of usage according to the goals that economic agents, including e.g., powerful multinational enterprises (MNE), try to achieve depending on their specific market position are described. The article explains situations of economic agents, both producers and processors of agricultural commodities on the one hand (acting as hedgers) and speculators one the other hand (acting as such), being naturally long or naturally short as well as respective tactics based on options they adhere to with the aim of protecting their positions against unfavorable moves in market prices. Thus, the fact it refers to real scenarios of using options as price risk hedging tools which international traders can utilize when moving agricultural and food commodities globally, reinforces opinion that this article is of a significant practical importance.

The influence of motivations on international location choice in least developed, emerging and developed countries: evidence from Chinese MNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Angulo-Ruiz ◽  
Albena Pergelova ◽  
William X. Wei
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Location Choice ◽  
Emerging Market ◽  
Developed Countries ◽  
Asia Pacific ◽  
Institutional Constraints ◽  
Least Developed Countries ◽  
Content Type ◽  
Developed Economies

Purpose This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse motivations – seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints – as determinants of the international location choice of emerging market multinational enterprises (EM MNEs) entering least developed, emerging, and developed countries. Design/methodology/approach The authors develop a set of hypotheses based on the ownership–location–internalization framework and complement it with an institutional perspective. The conceptual model posits that the different internationalization motivations (seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints) will impact the location choice of EM MNEs in developed economies, emerging markets or least developed countries. This study uses the 2013 survey data collected by the China Council for the Promotion of International Trade and the Asia Pacific Foundation of Canada. The final sample of analysis of this research includes 693 observations. Findings After controlling for several variables, two-stage Heckman regressions show there is a variation of motivations when EM MNEs enter least developed countries, emerging markets and developed economies. EM MNEs are motivated to enter least developed countries to seek markets and resources. Conversely, those firms enter developed countries in their search for technological assets and to escape institutional constraints at home. While the present study findings show a clear difference in the motivations that lead to location choice in least developed vs developed countries, the results are not as clear for location in other emerging countries. Research limitations/implications The paper offers empirical support for the importance of motivations as crucial determinants of location choice. Originality/value This paper provides a detailed quantitative study on the internationalization location choice of EM MNEs based on their motivations. Though theoretical models underscore the importance of motivations, we know very little about how, in practice, motivations drive location choice. This study contributes to the international location choice literature a deeper understanding of how diverse motivations drive choices of expansion into developed economies, emerging markets or least developed countries.

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