Internationalization of Emerging-Market Multinationals

Emerging Market ◽

Future Research ◽

Frugal Innovation ◽

Theoretical Concepts ◽

Firm Internationalization

This chapter analyzes the internationalization of emerging-market multinational enterprises (EMNEs) to clarify past contributions and outline suggestions for future research. We critically review the novelty of the phenomenon associated with the foreign expansion of firms from emerging markets, the new theoretical concepts introduced from analyzing these firms, and the new explanations related to their internationalization. We propose that future research can advance our understanding of these firms by studying how the underdevelopment of the home country’s economy and institutions influences firm internationalization. We specifically discuss four areas that can yield promising insights for internationalization research: frugal innovation, contractual innovation, upgrading escape, and institutional escape.

Corporate Social Responsibility in Emerging Markets

The Oxford Handbook of Corporate Social Responsibility ◽

10.1093/oxfordhb/9780198802280.013.27 ◽

2019 ◽

pp. 636-658

Author(s):

Jonathan Doh ◽

Bryan W. Husted ◽

Valentina Marano

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Emerging Markets ◽

Global Economy ◽

Emerging Market ◽

Future Research ◽

Developed Country ◽

Stakeholder Perspectives ◽

Corporate Social

In this chapter, we explore the rise and proliferation of corporate social responsibility (CSR) in emerging markets. We trace the history of CSR in emerging markets, a process that grew, in part, from criticisms of multinational enterprises (MNEs) in the global economy. We then turn our attention to the principal macro- and meso-level conceptual and theoretical lenses that have been used to inform the study of CSR in emerging markets, namely, institutional theory and cross-cultural perspectives. Finally, we review firm, network, and stakeholder perspectives that have guided the study of CSR in emerging markets. We consider the literature and practical accounts that have explored CSR by developed country MNEs in emerging markets, as well as the emerging literature on CSR by emerging market firms and MNEs (EMMNEs). We conclude with our overall assessment of the current understandings of CSR in emerging markets and make recommendations for future research.

Consumer Behavior in Emerging Markets

The Oxford Handbook of Management in Emerging Markets ◽

10.1093/oxfordhb/9780190683948.013.10 ◽

2018 ◽

pp. 218-240 ◽

Cited By ~ 1

Author(s):

Raquel Castaño ◽

David Flores

Keyword(s):

Consumer Behavior ◽

Emerging Markets ◽

Emerging Market ◽

High Income ◽

Future Research ◽

Psychological Processes ◽

Developed Markets ◽

Contextual Characteristics ◽

Initial Framework

Emerging markets are substantially different from markets in high-income, industrialized societies. While many aspects of consumer behavior are the result of inherent psychological processes and are, thus, generalizable across countries and cultures, the specific contextual characteristics of emerging markets can significantly influence other aspects of consumer behavior. In this chapter, we explore the behavior of emerging market consumers. This chapter reviews the existing literature and proposes an initial framework delineating the main differences between emerging markets and developed markets consumers that describe how consumers in these societies recognize a need for, select, evaluate, buy, and use products. The chapter discusses the issues and contributions of the research on emerging consumers and presents implications of extant research for international managers. Finally, the chapter elaborates on an agenda for future research in this area.

Investments by Emerging-Market Multinationals in Other Emerging Markets

The Oxford Handbook of Management in Emerging Markets ◽

10.1093/oxfordhb/9780190683948.013.28 ◽

2018 ◽

pp. 630-656

Author(s):

Jing Li ◽

Daniel Shapiro

Keyword(s):

Sustainable Development ◽

Corporate Governance ◽

Emerging Economies ◽

Emerging Market ◽

Institutional Development ◽

Spillover Effects ◽

Investment Strategy ◽

Future Research ◽

Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

Competitiveness Review An International Business Journal incorporating Journal of Global Competitiveness ◽

Home country underdevelopment and internationalization

10.1108/cr-04-2016-0021 ◽

2017 ◽

Vol 27 (3) ◽

pp. 217-230 ◽

Cited By ~ 19

Author(s):

Alvaro Cuervo-Cazurra ◽

Ravi Ramamurti

Keyword(s):

Emerging Markets ◽

Comparative Advantage ◽

Home Country ◽

Emerging Market ◽

Content Type ◽

Economic Underdevelopment ◽

Conceptual Paper ◽

Practical Implications ◽

At Home

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.

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

Chinese Management Studies ◽

10.1108/cms-05-2020-0182 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Fernando Angulo-Ruiz ◽

Albena Pergelova ◽

William X. Wei

Keyword(s):

Emerging Markets ◽

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.

FDI inflows and intellectual property rights for MNEs in emerging markets: an alternative approach through the lens of trademarks in Vietnam (1986-2016)

Multinational Business Review ◽

10.1108/mbr-10-2019-0140 ◽

2020 ◽

Vol 28 (4) ◽

pp. 483-519

Author(s):

Amy Linh Thuy Nguyen

Keyword(s):

Intellectual Property ◽

Emerging Markets ◽

Emerging Market ◽

Research Process ◽

Intellectual Property Right ◽

Intangible Asset ◽

Ip Protection ◽

Fdi Inflows ◽

Content Type

Purpose While the current anti-globalisation wave is considered as a regional and cyclical relapse among Western countries, the new era of globalisation has shifted away from stagnant developed economies towards the rising prosperity of emerging Asia, where it is attracting substantial global inward foreign direct investment (FDI). Focussing on Vietnam, the country that is seen as Asia’s next economic tiger, the question of how important intellectual properties (IP) protection is in the international competition for FDI inflows is still unsettled, especially on the under-researched topic of trademarks. Design/methodology/approach This paper takes on the business history approach, which allows rich evidence from the dynamic and evolving natures of multinational enterprises (MNEs) to drive the research process, so that international business scholars can test models rigorously. The evidence provided in this paper is essentially qualitative and combines trademark registrations data, with trade and FDI statistics between 1986 and 2016, also draws on companies’ archives, industry reports and related newspaper articles. Findings This paper provides the chronology of intellectual property right (IPR) legal landscapes and the dynamic co-evolution of trademarks and FDI inflows in Vietnam. Three trademark protection strategies for MNEs and their patterns here are addressed. The paper also argues that trademarks bring new insights and IP protection strategy for pharmaceutical MNEs for the case of Vietnam is as important in trademarks as it is in patents. In emerging markets with strong incentives for FDI such as Vietnam, MNEs are not necessarily put off by weak IPR, but rather create alternative strategies for dealing with the lack of IP protection in these emerging market settings. Originality/value This study challenges the stream of thoughts that view trademarks as a “neglected intangible asset” among different IPRs, while in fact, trademarks advance MNEs’ knowledge by ensuring competitiveness and long-run survival in emerging markets. This paper is among the first few attempts to look at pharmaceutical industry through the lens of trademarks, moving away from the traditional patent-focussed approach. It extends the understanding of OLI paradigm and highlights that MNEs need to possess Oa and Op advantages not only at the beginning of internationalisation process but rather evolving through the time to cope with imitation risks in the host country.

Innovating with Limited Resources: The Antecedents and Consequences of Frugal Innovation

Sustainability ◽

10.3390/su11205789 ◽

2019 ◽

Vol 11 (20) ◽

pp. 5789 ◽

Cited By ~ 1

Author(s):

Quan Cai ◽

Ying Ying ◽

Yang Liu ◽

Wei Wu

Keyword(s):

Emerging Markets ◽

Emerging Market ◽

Value Added ◽

Resource Constrained ◽

Firm Level ◽

Value Innovation ◽

Frugal Innovation ◽

Innovation Cost ◽

Emerging Market Firms ◽

Antecedents And Consequences

Frugal innovation is a resource scarce solution for emerging market firms. Based upon the resource-constrained innovation perspective, this research theoretically explores and empirically examines the drivers and consequences of frugal innovation. The results of a firm-level survey show that two types of frugal innovation (cost innovation and affordable value innovation) positively affect the performance of emerging-market firms. We also address the issues of how emerging-market firms deal with institutional, technological, and market constraints in emerging markets, and we show how these constraints drive frugal innovation. We find that emerging-market firms with higher levels of capability for institutional leverage and bricolage, and firms that face perceived dysfunctional competition, tend to generate more affordable, value-added new products. Overall, these findings have important implications for emerging-market firms seeking to conduct frugal innovation in resource-constrained emerging markets.

Brazilian corporations, the state and transnational activity: introduction to the special issue

Critical Perspectives on International Business ◽

10.1108/cpoib-03-2014-0015 ◽

2014 ◽

Vol 10 (4) ◽

pp. 230-236 ◽

Cited By ~ 6

Author(s):

Andreas Nölke

Keyword(s):

Emerging Markets ◽

Emerging Market ◽

Interdisciplinary Cooperation ◽

The State ◽

Special Issue ◽

Content Type ◽

Brazilian State ◽

Close Cooperation ◽

Transnational Activities

Purpose – The aim of the paper is to introduce a special issue which looks at the collaboration between the Brazilian state and Brazilian corporations with regard to the transnational activities of the latter. Design/methodology/approach – Departing from the state of the art of current studies of emerging market multinationals, the paper highlights the need for interdisciplinary work to understand the particular role of the state with regard to the outward expansion of these companies. The paper then highlights the different approaches the five papers of the special issue have taken to address this task. Findings – Although Brazil can be counted among the most liberal emerging markets, the special issue finds a very close cooperation between the Brazilian state and Brazilian multinationals. The former helps to finance overseas expansion of Brazilian multinationals, supports the solution of conflicts with the governments of neighboring countries and articulates the interests of Brazilian multinationals in global governance. The problems created by this close cooperation rather materialize with third parties, in particular with somewhat poorer countries in the Brazilian neighborhood, but also with smaller companies, consumers or radical social movements in Brazil. Originality/value – The paper shows the diversity of approaches that an interdisciplinary cooperation between Political Science, Political Economy, Development Studies and International Business can mobilize to make sense of very close state-business cooperation with regard to transnational activities of emerging markets multinationals.

International strategies of emerging market multinationals: A dynamic capabilities perspective

Journal of Management & Organization ◽

10.1017/jmo.2017.76 ◽

2018 ◽

Vol 26 (4) ◽

pp. 408-425 ◽

Cited By ~ 10

Author(s):

Ping Deng ◽

Yang Liu ◽

Vickie Coleman Gallagher ◽

Xiaojie Wu

Keyword(s):

Dynamic Capabilities ◽

Success Factors ◽

Emerging Market ◽

Future Research ◽

International Expansion ◽

Strategic Choices ◽

Exploration And Exploitation ◽

Internationalization Strategies ◽

International Strategies

AbstractThis paper focuses on the importance of dynamic capabilities in shaping the nature of international strategies of emerging market multinationals from mid-range economies. We argue that dynamic capabilities theory provides an insightful approach to understanding the internationalization of emerging market multinationals and their strategic choices. Drawing on dynamic capability theory and unpacking dynamic capabilities into four distinct but related dimensions or facets, we develop a typology of three internationalization strategies available to emerging market multinationals in their international expansion: sequential international ambidexterity (from exploitation to exploration, and vice versa) and structural international ambidexterity (simultaneous exploration and exploitation). Success factors associated with each of the ambidextrous internationalization strategies are also considered. We conclude with a discussion of the implications of the dynamic capabilities framework for theoretical implications and fruitful areas for future research endeavors.

The Development of Russian Multinational Enterprises From the 1990s to the Present

Organizations and Markets in Emerging Economies ◽

10.15388/omee.2014.5.2.14235 ◽

2014 ◽

Vol 5 (2) ◽

pp. 59-78 ◽

Cited By ~ 1

Author(s):

Anna Zubkovskaya ◽

Snejina Michailova

Keyword(s):

Ownership Structure ◽

Global Economy ◽

Emerging Market ◽

Limited Attention ◽

Location Choices ◽

Entry Modes ◽

Key Characteristics ◽

Oli Paradigm

While the internationalization of Russian multinational enterprises (MNEs) has increased significantly since the early 2000s, this phenomenon has attracted limited attention among scholars. In the present paper we examine the key characteristics of Russian MNEs and use the literature on emerging market multinationals and Dunning’s OLI paradigm to trace Russian MNEs’ development from the 1990s to the present. We analyze this development, particularly in regard to ownership structure, location choices, entry modes, and motives to internationalize. We analyze how Russian MNEs have evolved into powerful entities and contributed to Russia’s modernization and integration into the global economy.