From focus to ambidexterity: the choice of catch-up strategy for EMNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xinmin Peng ◽  
Keyi Fang ◽  
Martin Lockett
Keyword(s):  
Multinational Enterprises ◽  
Emerging Market ◽  
New Technology ◽  
Global Market ◽  
Chinese Government ◽  
Content Type ◽  
Windows Of Opportunity ◽  
Before And After ◽  
Catch Up ◽  
Nuanced Understanding

PurposeEmerging-market multinational enterprises (EMNEs) can choose focused or ambidextrous strategies to catch up with global market leaders through overseas foreign direct investment (OFDI). The Belt and Road Initiative (BRI), launched by the Chinese government in 2013, had a profound impact on Chinese multinational enterprises’ international behavior. This paper analyses how EMNEs select focused or ambidextrous catch-up strategies before and after the BRI, integrating ambidexterity and catch-up theories to provide a more nuanced understanding of the evolution of EMNE strategy.Design/methodology/approachA case study is well suited for deriving rich descriptions of empirical phenomena for which little theory exists. Because the existing literature has not yet fully explored and conceptually modeled the influence of windows of opportunity on international catch-up strategies, we use qualitative research to explore the mechanisms of strategy evolution in EMNEs.FindingsThe results show that the choice of catch-up strategy is influenced by the nature of windows of opportunity and the firm's accumulated technological capability. Specifically, the opening of institutional windows as a result of the BRI could give significant momentum to the international catch-up process by providing incentives and opportunities for EMNEs to enter more markets and new technology fields. The EMNEs studied underwent a transition from a focused strategy in the catch-up stage to an ambidextrous strategy in the beyond catch-up stage.Originality/valueThese conclusions can not only deepen our understanding of the dynamics of catch-up strategies in the global context but also enrich the research on the ambidexterity of EMNEs, especially in the context of the BRI.

International expansion for knowledge acquisition or knowledge acquisition for international expansion?

2019 ◽  
Vol 28 (2) ◽  
pp. 177-200 ◽  
Author(s):  
Clarice Secches Kogut ◽  
Renato Dourado Cotta de Mello ◽  
Angela da Rocha
Keyword(s):  
Knowledge Acquisition ◽  
Latin American ◽  
Multinational Enterprises ◽  
Longitudinal Design ◽  
Emerging Market ◽  
Theoretical Perspective ◽  
Multinational Firm ◽  
International Expansion ◽  
Content Type ◽  
Catch Up

Purpose Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse knowledge transfer (RKT) processes and how such processes are managed by headquarters. Therefore, this paper captures the perspective of top management concerning RKT and the processes used to create, transfer and integrate knowledge. Design/methodology/approach The study uses a longitudinal design based on the case method of investigation. The case selected for the study was a Brazilian company theoretically sampled for being a domestically, regionally and globally important, information-rich company that operates in an industry in which technology plays a crucial role. The company was also selected for having had asset-seeking motives in at least some of its foreign market entries and for having successfully absorbed foreign-acquired capabilities. Findings The study provides counterfactual evidence to the springboard perspective, considering timing and speed of the internationalization and catch-up processes and the size of acquisitions. The study also highlights differences to other emerging market multinational enterprises, concerning the internationalization trajectory and catch-up moves, and to traditional MNEs, regarding RKT challenges and practices. Research limitations/implications The main limitations of the study relate to the case study method, which does not allow for statistical generalization, although it does support analytical generalization. Originality/value The study contributes to the literature by shedding light on the process by which a Latin American multinational firm developed technological capabilities to compete globally, focusing on the symbiotic, self-nurturing relationship between internationalization processes and technology acquisition and integration processes. Moreover, the work provides novel theoretical insights regarding timing, location, size and execution of the RKT activities. Finally, the paper contributes to the understanding of the relational aspects of the RKT process by focusing on building human relationships as the major force behind knowledge integration and examining the resistance of the acquired companies from developed markets to adopt the parent company’s best practices, or to contribute to its integrated knowledge, when the parent company is an EMMNE.

Post-acquisition control strategy and cross-border acquisition performance of Chinese MNEs: a fsQCA approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qi Yue ◽  
Ping Deng ◽  
Yanyan Cao ◽  
Xing Hua
Keyword(s):  
Fuzzy Set ◽  
Control Strategy ◽  
Multinational Enterprises ◽  
Cultural Distance ◽  
Emerging Market ◽  
Complex Nature ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Chinese Mnes

PurposePost-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.Design/methodology/approachBased on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.FindingsOn the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.Originality/valueThis study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.

Cultural and organizational integration in cross-border M&A deals

2017 ◽  
Vol 30 (7) ◽  
pp. 1109-1135 ◽  
Author(s):  
Andrei Panibratov
Keyword(s):  
Case Studies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Strong Support ◽  
Annual Reports ◽  
Integration Process ◽  
Key Factors ◽  
Content Type ◽  
Cross Border ◽  
Organizational Integration

Purpose The purpose of this paper is to identify key factors that influence the integration process in cross-border mergers and acquisitions (M&A) deals of emerging multinational enterprises (EMNEs). The research questions are: how national and organizational culture coupled with other organizational characteristics influence M&A deals of EMNEs? Which factors influence the process of cultural and organizational integration in cross-border M&A deals, initiated by EMNEs? What is the effect and consequences that different integration factors have on cross-border M&A deals by EMNEs? Design/methodology/approach The paper is based on a multiple case study research, considering cross-border deals of Chinese and Russian firms separately. Each block consists of two cases, describing M&A integration of companies operating in two sectors: high technology and finance. The authors obtained the data for case studies from companies’ official websites, annual reports, press releases, other official documents where companies were mentioned, business-media sources (newspapers and magazines), published interviews, documented speeches, letters, laws, as well as through blogs and social networks. The authors have also used the published information from articles, books, databases, and previously conducted case studies. Findings The authors have identified the factors influencing deals’ results of Chinese and Russian MNEs, with explanation based on case studies’ analysis. The full list of factors is presented in Table IV in the manuscript. The authors have also identified the set of elements that were derived from the case studies’ analysis only, without having any strong support in the literature, such as changes at a senior management level, educational and business exchanges, CSR policy, and the government involvement. Originality/value The authors have identified the key factors that influence integration of emerging market firms in cross-border M&A deal. The list of factors was adjusted and actualized in accordance with the results of four cases of cross-border M&A deals of Chinese or Russian companies. As a result, the authors founded the combination of characteristics of cultural and organizational integration process of firms from China and Russia.

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.

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

2020 ◽  
Vol 28 (4) ◽  
pp. 483-519
Author(s):  
Amy Linh Thuy Nguyen
Keyword(s):  
Intellectual Property ◽  
Emerging Markets ◽  
Multinational Enterprises ◽  
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.

Resistance toward dominant US work practices in emerging markets

2019 ◽  
Vol 15 (4) ◽  
pp. 323-340
Author(s):  
Paresha N. Sinha ◽  
Dharma Raju Bathini
Keyword(s):  
Migrant Workers ◽  
Fast Food ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Working Environment ◽  
Work Practices ◽  
Content Type ◽  
Study Approach ◽  
Effect Theory ◽  
Local Firms

Purpose The purpose of this study is to apply the dominance effect theory and postcolonial notions of “otherness” to critically study the enactment of mimicry at IndianBread, an Indian fast-food chain that has adopted work practices typically found in US fast-food multinational enterprises (MNEs). Design/methodology/approach The authors used an interpretive sensemaking case study approach and collected qualitative data drawing on observations, notes from the company policy manual and in-depth interviews with eight staff at an IndianBread outlet. Data were also collected during informal interactions with staff at three other IndianBread outlets. The analysis focused on the enactment of mimicry and studied the postcolonial dynamics between managers and migrant workers to explain their resistance to the adoption of US work practices. Findings Work practices of US fast-food MNEs such as the standardization of workers’ appearance and basic “Englishization” such as greeting customers in English had been adopted at the IndianBread outlet. However, migrant workers resisted enforcement by contesting the superiority and relevance of these US work practices. The workers’ resistance was accommodated by local managers to pacify and retain them. Research limitations/implications The analysis contributes to a deeper understanding of the dynamics of resistance to the dominant influence of US work practices in emerging market firms. It expands current notions of “otherness” by presenting the perspective of “local” managers and migrant workers. The authors show how worker resistance embedded in their “identity work” involves contesting notions of “inferiority” of local work practices and selves. In the case of managers, accommodating resistance maintains their “legitimacy of dominance”. To that end, the study explains how the need to mimic US work practices is enforced, contested and ultimately diluted in competitive local firms in rising India. Practical implications The organizationally grounded data show how managerial accommodation of workers’ resistance to US practices creates a more flexible working environment that dilutes migrant workers’ sensitivity to their exploitation at the fast-food outlet. Social implications The findings identify the link between mimicry and resistance by the “other,” the ambivalence of the colonizing agent and the ongoing material exploitation within emerging economies. Originality/value To that end, the study explains how the need to mimic the US work practices is enforced, contested and ultimately diluted in the context of the competitive local firms in India.

Air Asia India: competing for air space in an emerging economy

2017 ◽  
Vol 27 (5) ◽  
pp. 516-532 ◽  
Author(s):  
Tulsi Jayakumar
Keyword(s):  
Multinational Enterprises ◽  
Business Models ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
Secondary Data ◽  
Emerging Economy ◽  
Competitive Strategies ◽  
Content Type ◽  
Country Specific

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.

Remarkable global market stability is unlikely to last

2017 ◽  
Keyword(s):  
Financial Markets ◽  
Emerging Market ◽  
Global Market ◽  
Parliamentary Election ◽  
Far Right ◽  
Content Type ◽  
Volatility Index ◽  
Bond Yield ◽  
Bond Funds ◽  
Growth Prospects

Subject Financial market volatility. Significance A more dovish outlook for US monetary policy and the weaker performance of the far right in the Dutch parliamentary election have contributed to subdued volatility and risk aversion in financial markets. The Euro Stoxx 50 Volatility Index, Europe’s so-called ‘fear gauge’, measuring anticipated price swings in European equities, is close to a historic low. However, other gauges of sentiment, such as outflows from ‘junk-bond’ funds, suggest investors are increasingly concerned that markets are too frothy. Impacts Oil prices fell by 10% in March amid oversupply concerns, and further slippage would complicate OPEC talks on extending the output curbs. Emerging market equities have risen by 11.1% this year as dollar weakness and improving growth prospects lure investors seeking returns. The spread between France's ten-year government bond yield and Germany's remains close to a four-year high, highlighting Europe’s variation.

Home government influence on Russian MNEs: balancing control against interest

2016 ◽  
Vol 11 (4) ◽  
pp. 474-496 ◽  
Author(s):  
Andrei Panibratov
Keyword(s):  
Multinational Enterprises ◽  
Home Country ◽  
Emerging Market ◽  
International Strategy ◽  
Content Type ◽  
Strong Product ◽  
Institutional Forces ◽  
The Government ◽  
Role Of The Government

Purpose The purpose of this paper is to provide a better understanding of how the government influences the internationalization of emerging MNEs and, more specifically, answer the questions how and to what extent does the combination of the home country government’s control and interest influence Russian MNEs. Design/methodology/approach First, the author examined sector-specific factors and institutional forces that affect the development of the Russian economy’s industries. Second, the author has classified the sectors included in this study into four groups according to the following two main criteria: the interest of the government in the development of the sector, and the degree of state control for the firms in the sector. Third, the author has analyzed the forms and types of the government participation in firms’ internationalization in defined groups based on the observation of industries’ legislative acts and state decrees and orders. After that, the author has verified the existence of certain similarities of strategies under the governmental influence, and finally discussed the extent of the control and interest implied by the government toward these firms. Findings After analyzing the patterns of the state involvement in firms’ internationalization in various groups the author found that some of the groups are characterized by similar types of government role and their responses are, also, sometimes similar. The author presents a more detailed look at the above results in Table III, and explain the two-sided role of the government in different groups of firms. Research limitations/implications While the literature emphasizes that institutional forces shape the internationalization of emerging multinational enterprises, they have not been comprehensively linked to explaining the contradictory role of the government in this process. The author addresses this gap by examining an integrated influence that home government factors (namely, control and interest) exert in enabling firms to compete abroad. In addition, the author contributes to the knowledge about the behavior of Russian firms, which is one of the less researched areas in the field of international management. Practical implications The paper also has value for companies’ strategists as it provides them with understanding of the complexity of government-related determinants influencing the internationalization process of their firms and the types of firms’ abilities to be developed or supported. It also provides a practical tool for modeling their international strategy formation and accounting for different types of state influences on internationalization of EM firms. Originality/value This paper highlights the government-related aspects of the internationalization of Russian MNEs. Even when they go abroad with strong product capabilities and a proactive managerial style, they still benefit from home country institutional resources. The author sees the strength of the empirical findings in further extension of the understanding of origins, consequences and prospects of internationalization of emerging market firms with the home government involvement.

scholarly journals A set of motives to unite them all?

2015 ◽  
Vol 23 (1) ◽  
pp. 2-14 ◽  
Author(s):  
Alvaro Cuervo-Cazurra ◽  
Rajneesh Narula
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Future Research ◽  
Special Issue ◽  
New Developments ◽  
Content Type ◽  
The Past ◽  
Nuanced Understanding ◽  
The Way

Purpose – The purpose of this paper is to introduce the debate forum on internationalization motives of this special issue of Multinational Business Review. Design/methodology/approach – The authors reflect on the background and evolution of the internationalization motives over the past few decades, and then provide suggestions for how to use the motives for future analyses. The authors also reflect on the contributions to the debate of the accompanying articles of the forum. Findings – There continue to be new developments in the way in which firms organize themselves as multinational enterprises (MNEs), and this implies that the “classic” motives originally introduced by Dunning in 1993 need to be revisited. Dunning’s motives and arguments were deductive and atheoretical, and these were intended to be used as a toolkit, used in conjunction with other theories and frameworks. They are not an alternative to a classification of possible MNE strategies. Originality/value – This paper and the ones that accompany it, provide a deeper and nuanced understanding on internationalization motives for future research to build on.

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