Technological knowledge access and transfer of multinational corporations from emerging economies: a comparison study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang
Keyword(s):  
Multinational Corporations ◽  
Emerging Economies ◽  
Explicit Knowledge ◽  
Technological Knowledge ◽  
Foreign Direct Investments ◽  
Industrialized Countries ◽  
Content Type ◽  
Wilcoxon Rank Sum Test ◽  
The Us ◽  
Knowledge Access

Purpose This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer. Design/methodology/approach This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs. Findings While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs. Originality/value This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs.

EMNC technological knowledge flow patterns: an overview of the US patents granted

2019 ◽  
Vol 28 (1) ◽  
pp. 129-155
Author(s):  
Feng Zhang
Keyword(s):  
Flow Patterns ◽  
Technological Knowledge ◽  
Knowledge Flows ◽  
Knowledge Generation ◽  
Knowledge Flow ◽  
Industrialized Countries ◽  
Content Type ◽  
Technological Competence ◽  
The Us ◽  
Internal Knowledge

Purpose With considerable attention paid to the motives and process of idiosyncratic internationalization trajectory of multinationals from emerging economies (EMNCs), little is known on whether, and if so how, new competitive advantages of EMNCs are created and accumulated over time. MNC and EMNC literature agrees on the importance of external and internal knowledge linkages in technological competence creation. By building upon this framework, this paper aims to evaluate EMNCs’ external and internal knowledge flow patterns by benchmarking their counterparts from mature industrialized countries (MMNCs). Design/methodology/approach This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India, and their matched MMNCs. Being the first to use the US patent and citation data in studying leading innovation-oriented EMNCs, the authors use a descriptive statistical method. Findings The findings offer empirical insights of the scale, scope and quality of EMNC technological competence creation. Moreover, in contrast to existing EMNC literature, it is found that EMNC parents have been the most important center of EMNC technological knowledge generation. The matched group comparisons of external and internal knowledge flows further reveal detailed similarities and differences of competence creation between EMNCs and MMNCs, and among EMNCs. Originality/value This study represents one of the first attempts to investigate the post-internationalization technological competence creation of EMNCs by using a novel data source. This study sets the foundation to deepen the understanding of EMNC technological competence creation. The findings suggest interesting propositions and offer important implications for future researches.

EMNC technological competence creation: key mechanisms and innovative performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang
Keyword(s):  
Multinational Corporations ◽  
Explicit Knowledge ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Control Group ◽  
Foreign Direct Investments ◽  
Content Type ◽  
Innovative Performance ◽  
Technological Competence ◽  
Managerial Implications

PurposeConsiderable attention has been paid to the motives and process of idiosyncratic internationalization trajectory of Multinational Corporations from emerging economies (EMNCs). Yet, the ability to undertake strategic asset-seeking foreign direct investments (FDIs) is not the same as the ability to achieve subsequent investment success (Buckley, 2018). Since an ultimate goal of strategic asset-seeking FDIs is to tap advanced knowledge in host locations to accelerate EMNC competence creation, and the current study aims to shed light on the question of whether, and if so how, EMNCs have been able to build competences after strategic asset-seeking motivated FDIs.Design/methodology/approachThis study tests the US patent and citation data from 2000 to 2014 of leading innovation-oriented MNCs from China and India, complemented with data from LexisNexis Directory of Corporate Affiliations and Mergent Online databases. Wilcoxon rank sum test is employed to compare EMNCs with control group MNCs from mature industrialized countries to identify key technological competence creation mechanisms of EMNCs. Negative binomial regression technique is then employed to test the relationship between the key mechanisms and EMNC innovative performance in terms of quantity and quality of patented inventions.FindingsIn contrast to the extant EMNC literature, the author finds that EMNC parents adopt a hands-on and less of an orchestrating approach. They are playing critical roles in accessing and transferring knowledge from international host locations. The empirical analyses indicate an absence of reverse transfers of knowledge from subsidiaries to the parent. Instead, EMNC parents directly access and absorb explicit knowledge from external sources in subsidiary host locations, which significantly contributes to EMNC innovative performance. Meanwhile, the author finds that the employment of intra-firm and inter-unit inventor teams and associated internal tacit knowledge access and transfer significantly contribute to EMNC innovative performance.Originality/valueThis study investigates the post-internationalization performance of EMNCs and contributes to the reconciliation of theoretical debates, as well as the generation of a comprehensive understanding of the MNC. Managerial implications are also discussed.

Bicultural Managers and their Role in Multinational Corporations

2012 ◽  
pp. 43-55 ◽  
Author(s):  
Kathrin Kiesel ◽  
Parissa Haghirian
Keyword(s):  
Multinational Corporations ◽  
Multinational Corporation ◽  
Family Background ◽  
Ethnically Diverse ◽  
Controversial Issue ◽  
Industrialized Countries ◽  
The Us

Exposure to other cultures is common through extensive travel, living in ethnically diverse environments, attending universities abroad, or having work assignments in other countries. In places like the US, more and more people cannot fit themselves into certain ethnic categories, thinking of themselves as being “mixed” (Goldstein & Morning, 2000) or bicultural. This phenomenon has been recognized and researched increasingly in recent years. One aspect is the question on how different societies deal with bicultural people. In this chapter, the authors investigate individuals with a bicultural family background and investigate how this biculturality reflects on their role in business. The survey presented in this paper investigates the relevance of bicultural skills and consequently the roles that bicultural managers play in multinational corporations. To investigate this issue the survey was conducted among managers who had one Japanese and a Non-Japanese parent and worked in a multinational corporation in Japan. Japan was chosen, because it is a more controversial issue in Japan than in other industrialized countries.

Prospects for emerging economies to end-2016

2016 ◽  
Keyword(s):  
Fiscal Policy ◽  
Exchange Rates ◽  
Emerging Economies ◽  
Federal Reserve ◽  
Emerging Market ◽  
Commodity Prices ◽  
Content Type ◽  
Political Risks ◽  
The Us ◽  
Growth Prospects

Subject Prospects for emerging economies to end-2016. Significance Despite political risks causing bouts of volatility in countries such as Brazil and Turkey, emerging market (EM) growth prospects have improved moderately and asset prices have rebounded after the turbulence of early 2016. More stability in exchange rates has helped, with the US Federal Reserve (Fed) holding off raising rates. The rebound in commodity prices has been supportive, too, together with receding concerns about China's slowdown. Some countries have also eased fiscal policy to reduce social tensions risks.

Prospects for emerging economies in 2016

2015 ◽  
Keyword(s):  
Emerging Markets ◽  
Emerging Economies ◽  
Federal Reserve ◽  
Quantitative Easing ◽  
Fiscal Deficits ◽  
Content Type ◽  
Economic Fundamentals ◽  
The Us ◽  
Lift Off ◽  
Public Debts

Subject Prospects for emerging economies in 2016. Significance Emerging markets (EMs) face formidable headwinds as their economic fundamentals deteriorate and the US rates 'lift-off' gets closer: China's slowing growth, the commodity sell-off, investment cuts, depreciating currencies and high debt levels, especially dollar-denominated debt. Neither a delay in the Federal Reserve (Fed) rate rise nor the forthcoming quantitative easing (QE) extension by the ECB will provide long-lasting respite amid widening fiscal deficits and rising public debts.

Chinese multinationals’ FDI motivations: suggestion for a new theory

2019 ◽  
Vol 14 (1) ◽  
pp. 70-90 ◽  
Author(s):  
Byung Il Park ◽  
Taewoo Roh
Keyword(s):  
Mergers And Acquisitions ◽  
Multinational Corporations ◽  
Emerging Market ◽  
Developed Countries ◽  
Future Research ◽  
Foreign Direct Investments ◽  
Data Set ◽  
Content Type ◽  
Developed Economies ◽  
Chinese Mncs

Purpose The purpose of this paper is to complement the conventional international business (IB) theory, the OLI perspective, which is good at explaining the foreign direct investments (FDIs) undertaken by developed market multinational corporations (DMNCs). This study also suggests a new theoretical framework, namely, the OILL paradigm, that is able to encompass FDIs from emerging market multinational corporations (EMNCs) toward developed economies. Design/methodology/approach The data comprising 206 Chinese MNCs, which completed international mergers and acquisitions (IMAs), were obtained from Zephyr. By using these data, logical regressions are conducted to statistically confirm that we should not omit the learning motivation if we want to adequately understand the FDI phenomenon by encompassing investment flow from developing (or emerging) to developed countries. Findings The results based on this data set indicate that EMNCs often try to enter developed economies with the motivation to seek sophisticated foreign host knowledge that is not available internally. In particular, they tend to use IMA strategies when they want to learn from heterogeneity (i.e. inter-industry mergers and acquisitions) and absorb advanced technologies from DMNCs. Research limitations/implications By shedding light on the recent new trend in FDI (i.e. FDI from emerging countries to developed economies), the study provides useful theoretical implications, as well as suggesting scholarly contributions. However, we should acknowledge that there are some limitations to this study. First, the study explores only Chinese MNCs. Second, learning motivations need to be minutely and precisely measured by other studies. Third, this study argues that FDI from EMNCs to DMNCs is triggered by the former’s motivation concerning knowledge acquisition. However, the type of knowledge should be considered, and this is perhaps another avenue for future research. Practical implications Conventional IB theories, such as the OLI paradigm and internalization theory, have long sought to answer the question of why DMNCs go for foreign markets, in spite of the presence of the liabilities of foreignness, and focused on their main investment motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations). For this reason, these theories do not adequately capture the primary FDI motivations of EMNCs, and consequently, they are unable to see the big picture when it comes to the FDI phenomenon. Based on this idea, the authors complement the well-known triad motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations) by adding the knowledge-seeking motive and contribute to the evolution of IB theories by suggesting a new theory, which is the OILL paradigm. Originality/value The study contributes to the extant literature in the field of IB in two key ways. First, it examines EMNCs’ central motivations in conducting FDI where empirical research is sparse. By doing this, this paper attempts to solve the query indicated above (i.e. why MNCs choose FDI in spite of the presence of the liabilities of foreignness), and it offers a new theory (i.e. the OILL paradigm).

Internationalization paths of fruit export companies from emerging economies

2019 ◽  
Vol 15 (2) ◽  
pp. 320-343
Author(s):  
Luis Vinicio Losilla ◽  
Alejandra Engler ◽  
Verena Otter
Keyword(s):  
Emerging Economies ◽  
Agricultural Sector ◽  
Significant Proportion ◽  
Industrialized Countries ◽  
Agricultural Export ◽  
Content Type ◽  
Training Strategy ◽  
Industrial Sectors ◽  
The Matrix ◽  
Internationalization Strategies

Purpose The purpose of this paper is to develop and apply a framework that examines the dynamics of internationalization strategies employed by export companies in the agricultural sector of emerging economies over time, with a focus on the locus of destination markets of the Chilean fruit sector. Thus, the objective is to identify conceptual and empirical deviations from existing research on export firms participating in non-agricultural sectors of industrialized countries. Design/methodology/approach The matrix of multi-nationality developed by Aggarwal et al. (2011) is extended by incorporating the firm category of “host region” and the dimensions scale and time. This framework is utilized to classify 233 Chilean fresh fruit exporters according to their internationalization strategies based on a geographical distribution of their exports. A uni- and bivariate longitudinal analysis is conducted over a seven-year period (2009–2015) to explore the dynamics of this internationalization process. Findings A significant number (12.75 percent) of firms classified as “host regional” are identified, and thus a clear difference in internationalization strategies when compared to non-agricultural sectors in industrialized countries. Simultaneously, similarities in these sectors can be found. Most firms are “transregionally” (65.12 percent) or “globally” oriented (16.06 percent), mainly following a linear internationalization path when considering the number of export markets. But there is also evidence of “born-global” firms, which mainly follow non-linear internationalization paths in more geographically and psychically distant markets. Research limitations/implications The extended framework developed in this research can be applied to future studies, particularly in the case of economies where a significant proportion of firms are predominantly focusing their export strategies on one single international market. Since this study focuses on one national sector as a prime example, further studies on other countries and sectors may provide additional evidence of its generalizability. Practical implications Based on the findings, concrete measures have been suggested to aid Chilean policy makers in implementing evidence-based economic policies, as well as Chilean public trade organizations and private export associations in the fruit sector, in relation to services such as training, strategy consulting and trade network development that they provide to export firms. Originality/value The study contributes to the existing literature by introducing the firm category “host regional” into the matrix of multi-nationality, and empirically verifies its existence among agricultural export firms in emerging economies. Furthermore, it also shows that even when it might result counterintuitive, firms from the agricultural sector share similarities in internationalization strategies with firms from industrial sectors.

Bicultural Managers and their Role in Multinational Corporations

2014 ◽  
pp. 1183-1196
Author(s):  
Kathrin Kiesel ◽  
Parissa Haghirian
Keyword(s):  
Multinational Corporations ◽  
Multinational Corporation ◽  
Family Background ◽  
Ethnically Diverse ◽  
Controversial Issue ◽  
Industrialized Countries ◽  
The Us

Exposure to other cultures is common through extensive travel, living in ethnically diverse environments, attending universities abroad, or having work assignments in other countries. In places like the US, more and more people cannot fit themselves into certain ethnic categories, thinking of themselves as being “mixed” (Goldstein & Morning, 2000) or bicultural. This phenomenon has been recognized and researched increasingly in recent years. One aspect is the question on how different societies deal with bicultural people. In this chapter, the authors investigate individuals with a bicultural family background and investigate how this biculturality reflects on their role in business. The survey presented in this paper investigates the relevance of bicultural skills and consequently the roles that bicultural managers play in multinational corporations. To investigate this issue the survey was conducted among managers who had one Japanese and a Non-Japanese parent and worked in a multinational corporation in Japan. Japan was chosen, because it is a more controversial issue in Japan than in other industrialized countries.

Challenges of money laundering for sovereign states that uses the US dollar

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prosper Simbarashe Maguchu
Keyword(s):  
Multinational Corporations ◽  
Money Laundering ◽  
Migrant Workers ◽  
Tax Evasion ◽  
Small Businesses ◽  
Black Market ◽  
Content Type ◽  
The Us ◽  
Us Dollar ◽  
Practical Implications

Purpose There has been almost no scholarly work on the challenges of money laundering in sovereign states that use the US dollar as their currency of choice. This study aims to break the silence by highlighting how money laundering thrives in these situations mainly due to lack of or weak regulation of the US dollar by both the adopting states and the USA. Design/methodology/approach The research depended on various secondary data sources. It is an adapted academic version of a shorter piece for a professional magazine for professionals in the Anti-Money Laundering (AML) Field. Findings Preliminary findings show that due to the lack of regulation of the US dollar in dollarized economies, unscrupulous politicians, organized criminal gangs and multinational corporations among others can use a variation of the Black Market Peso Exchange (BMPE) to counteract money laundering controls and launder ill-gotten gains from crimes such as corruption, transnational crimes and tax evasion. Furthermore, ordinary citizens, migrant workers and small businesses avoiding stringent exchange rates are also using the black market, posing a further challenge to the law enforcement authorities. Practical implications The practical implications of this paper relate to how the mutations of money laundering techniques, as they are adopted by criminals, to operate in different conditions are making it difficult not only to dictate but also to address using traditional AML techniques. Social implications BMPE has far reaching social consequences. Hence, this study is significant to instigate a search for solutions and for further detailed studies into the money laundering techniques in countries that do not have a sovereign currency. Originality/value To the best of the authors’ knowledge, this is the first paper to discuss the unique challenges faced by countries that have adopted the US dollar for domestic use. The paper also shows how dollarization is a modest reminder that money laundering technique such as the BMPE can evolve to counter the legislative and regulatory environment of the various jurisdictions in which they are laundered.

Protecting the survival of local SMEs during rapid tourism growth: ongoing lessons from Macao

2017 ◽  
Vol 9 (3) ◽  
pp. 316-334
Author(s):  
Javier Calero Cuervo ◽  
Ka U. Cheong
Keyword(s):  
Multinational Corporations ◽  
Policy Implications ◽  
Foreign Direct Investments ◽  
Policy Recommendations ◽  
Gaming Industry ◽  
Content Type ◽  
Foreign Labor ◽  
Local Stakeholders ◽  
Property Space ◽  
The Government

Purpose The purpose of this paper is to investigate how rapid tourism growth in Macao affected local small and medium-sized enterprises (SMEs). The liberalization of the gaming industry to multinational corporations (MNCs) in 2002 led to a sevenfold increase in foreign direct investments (FDI) in Macao. Design/methodology/approach A survey grounded in issues concerning how SMEs adapt to the effects of FDI in Macao was carried out by interviewing managers of local SMEs, MNCs and an SME association. Information from various published sources was also consulted to complement and update the analyses. Findings Findings revealed that the emergence of investments by MNCs in Macao brought favorable and unfavorable effects to local SMEs. Local SMEs were challenged in terms of recruiting and retaining human resources, given the attractive salaries and training offered by MNCs. Equally challenging for local SMEs was the effect of economic growth on the costs of property space in Macao’s small territory. However, local SMEs have advantages when collaborating with MNCs as the former serves as important partners in networking. Local SMEs can collaborate quicker with their network of local stakeholders which MNCs lack and need. The government and various stakeholders will need to continue their role in developing the capacities and capabilities of local SMEs. Research limitations/implications The research study has important public policy implications on structuring the foreign labor and property needs of local SMEs. Originality/value This paper provides insights on the challenges SMEs in small-open economies experience during rapid tourism growth fueled by MNCs, and some policy recommendations are proposed.

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