Outward Internationalisation of Emerging Market Small and Medium Sized Enterprises: Contract Manufacturing Relationship with Developed Market Multinational Enterprise(s) and Capabilities Development

Author(s):  
Ahmad Arslan ◽  
Sean Naughton ◽  
Abdollah Mohammadparast Tabas ◽  
Vesa Puhakka
2019 ◽  
Vol 27 (1) ◽  
pp. 54-76 ◽  
Author(s):  
Nic Robertson ◽  
John M. Luiz

PurposeThis paper aims to explore the delayed, then accelerated, internationalisation of an emerging multinational enterprise (EMNE), with a particular focus on the media technology sector, and how it exploited complementarities between emerging markets.Design/methodology/approachThe research is qualitative in nature and focuses on the expansion of a South African media technology EMNE case study that has a footprint in over 130 countries and has one of the largest market capitalisations of any media company outside the USA and China.FindingsEMNEs have unique capabilities in navigating uncertain institutional environments in emerging markets and are able to capitalise upon the institutional complementarities between their home and host countries. This may facilitate the recognition of market opportunities and the harnessing of new technologies to meet these opportunities in complementary markets for accelerated internationalisation.Practical implicationsEMNEs must capitalise upon the institutional complementarities between home and host country locations and use this to take advantage of identified market opportunities. This creates the possibility for a process of accelerated internationalisation. New technologies are creating particular market opportunities in emerging markets which can be exploited by EMNEs.Originality/valueThe authors provide a framework which illustrates how an EMNE can exploit complementarities between emerging markets to identify market opportunities, capitalise upon institutional similarities and harness new technologies in the process.


2021 ◽  
pp. 014920632199557
Author(s):  
Paul W. Beamish ◽  
Dwarka Chakravarty

The resource-based view (RBV) has evolved into a preeminent theory of strategic management. It is widely used by international business (IB) scholars since there is considerable synergy in core research questions pursued by IB and strategy researchers. However, in research on multinational enterprise (MNE) behavior, the use of RBV remains limited relative to other influential perspectives, such as the eclectic paradigm, the Uppsala model, and institutional theory. This is not surprising since the RBV was developed to explain performance differentials between country-centric firms with dominant product businesses rather than large MNEs with an expansive product-geographic scope. We describe how these limitations arise from the wider range of outcomes and explanatory variables, multiple levels of analysis, and the spatial, economic, and institutional barriers that are relevant to MNEs. We discuss the application of RBV to MNE research by the first author and other IB scholars. We then provide directions on how future research could use RBV more fruitfully to examine MNE performance and sources of competitive advantage in several areas. These include diversified corporations, subsidiary agglomeration, emerging market MNE internationalization, subsidiary autonomy, international joint ventures and alliances, and corporate social responsibility. Drawing upon teaching case examples from the first author’s work, we also point to the effectiveness of RBV in teaching with business cases, given its focus on firm performance (strategy).


2022 ◽  
Vol 14 (2) ◽  
pp. 599
Author(s):  
Veronika Tarnovskaya ◽  
Sara Melén Hånell ◽  
Daniel Tolstoy

The purpose of the study is to explore how a multinational enterprise can use social innovations to drive change and solve grand challenges in an emerging market context. This paper brings market-shaping literature into a sustainability context, particularly by studying the implementation of social innovations in an emerging market context. Specifically, the study involves an in-depth qualitative study of H&M’s fair living wages program in Bangladesh. We find that H&M is tackling utterances of grand challenges revealed by orchestrating social innovation in collaborations with local stakeholders. Social innovation is carried out in ongoing projects involving multiple stakeholders. The study contributes to current literature by revealing that multinational enterprises indeed can use social innovation to drive change in emerging markets, although this requires long-term commitment, an ability and willingness to shape the surrounding business environment, and a prominent standing among key stakeholders.


2011 ◽  
Vol 7 (2) ◽  
pp. 249-277 ◽  
Author(s):  
Daphne W. Yiu

Prior research on the internationalization of emerging market firms focused either on established incumbent firms or peripheral latecomer firms. However, an increase in outward foreign direct investment from emerging markets such as China has benefitted from a new organizational form – business groups. Given that new organizational forms pose fundamental challenges to existing theories on multinational enterprise, an examination of business group internationalization will bring the literature of multinational enterprise theories forward. Adopting an organizational approach, I propose that business groups, an organizational form that emerged to substitute market imperfections in China, constitute a micro-institutional environment for generating ownership, location, and internalization advantages, as well as for capitalizing on the linkage, leverage, and learning opportunities for internationalization. I posit that Chinese business groups facilitate such an internationalization process via their unique attributes including internal market, inward linkages, and institutional support. The article aims to provide a theoretical framework that generates insights for China's policy makers and managers, and to guide future research.


2021 ◽  
pp. 097215092110476
Author(s):  
Ashok Ashta

National identity has been found to be a basis for othering and resistance in host country managers at multinational enterprises overseas’ affiliates. An original model of employee’s resistance using national identity has developed a nuanced understanding of how resistance manifests. This research tests this original model in a multinational enterprise’s office in the emerging market and power distance accepting India. A case study design was adopted. Interpretive analysis of the data indicates that the newly developed model could apply to Indian situations, and collateral inductive reasoning proposes a further refinement to this model. Thus, besides verbal othering, it is found that the use of space and rituals can also be used in the acts of resistance and further it is proposed that such acts are not necessarily continuous, but can manifest intermittently. Hence, the practising international human resources manager now has a broader lens to assess resistance manifestation, facilitating sooner remedial countermeasures. The cross-cultural study is among the pioneers in studying national identity as a means of resistance in a power distance accepting context in general, and the under-researched advanced economy, emerging market Japan–India international business dyad specifically. It contributes to cross-cultural management (CCM) literature by surfacing the darker side of globalization—the power retained by the parent company and concomitant subordination of the host country manager that results in resistance. This study adds to the under-researched India–Japan global business scholarship.


Author(s):  
Bruno de Oliveira Carvalho ◽  
Mario Henrique Ogasavara

Purpose Numerous firms in the automotive industry, to improve their competitiveness, have recently adopted mergers and acquisitions (M&As) strategies, particularly those in which a multinational enterprise from a developed country (DMNE) or a multinational enterprise from an emerging market (EMNE) acquires a DMNE. However, DMNEs in the industry typically do not acquire emerging market firms. In response, this paper aims to analyze that uncommon M&As process by focusing on the relationship between modes of post-acquisition acculturation and project management (PM) maturity. Because the literature addressing M&As does not correlate the acculturation process with project team maturity, this study seeks to partly fill that gap by proposing a framework for the relationship that draws upon Nahavandi and Malekzadeh’s (1988) research and Holmes and Walsh’s (2005) model. Design/methodology/approach This paper present qualitative research based on a case study in the automotive industry of a DMNE’s acquisition of a Brazilian firm. For data collection, this research conducted 14 in-depth interviews with managers, the transcripts of which were analyzed using content analysis. Findings Content analysis revealed differences between modes of acculturation perceived by the acquired and acquirer firms, as well as a gap between PM teams from both types of firm. A direct relationship emerged between the mode of acculturation and PM team, which constituted a factor driving the evolution of PM practices within the company. In recognizing that relationship, this research proposes and elucidates a framework that relates the mode of acculturation following the M&A process to PM maturity. Originality/value No previous research in the literature on M&As has analyzed post-acquisition acculturation and PM maturity in conjunction. For managers in post-acquisition companies, the proposed framework of this study is useful for understanding good management practices and, for project teams, for understanding the acculturation process.


Sign in / Sign up

Export Citation Format

Share Document